The best corporate governance practices indicate that there should be a requirement in the laws of the countries under which a person who has acquired a significant share of the company is entitled to require minority shareholders to sell a small fraction of shares in the equity capital at a fair price.
The purpose of such mechanism is to improve corporate governance of the joint-stock company.
Apart, the mandatory sale mechanism of the shares by minority shareholders at the shareholder’s request-the owner of the control block of shares of the entity (hereinafter – “squeeze out”) is based in the fact that within public interests the price of ongoing protection of the minority shareholders rights becomes disproportionate to the majority shareholder’s expenses and risks when the remaining minority is diminished to a very low level.
Data on the “squeeze out” procedure
|The general amount of the public irrevocable requests applied to the NSSMC
|The general amount of “squeeze-out” according to the public irrevocable requests
|The general amount ofcomplaints amounnt on disagreement the procedures
|The general amount on which escrow accounts are opened
|The general amount of sharesholders gained money from the open escrow accounts
|Funds disbursed to the
|1 684 692 464,93
|Complaints to 45 procedure
|1 619 991 398
|1 163 463 626