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Settling a Chemical Plant’s Corporate Conflict

Minority shareholders made efforts to make both the controlling shareholder and the general director of a company to purchase their shares for RUB 1,500,000,000 – several times as high as the actual price.

In accordance with a conventional practice used in such situations, they abused their rights by repeatedly requesting numerous corporate documents and threatening the company with claims against it and its general director for alleged violations.

The client’s key goal was to completely finish the corporate war and normalise the company’s subsequent operations – a goal that could be achieved by purchasing the shares from their minority holders who urged the company to do that at a considerably overstated price.


RussianLegal conducted a corporate audit of the company, stabilised its interaction with its shareholders on technical matters and entered into long-term negotiations that resulted in the share price reduced by a factor of more than three, to RUB 400,000,000, which was in line with an independent valuation. As a result of our efforts, the majority shareholder purchased the minority stakes at a fair market price and the corporate conflict was settled.