ТHE STATUTORY EXIT RIGHT OF A MINORITY SHAREHOLDER IN A PRIVATE LIMITED COMPANY UNDER LITHUANIAN AND BULGARIAN COMPANY LAW

Abstract

This article focuses on the statutory exit right of a minority shareholder in a private limited company in two countries – Lithuania and Bulgaria – by exploring two interconnected aspects with equal practical significance: conditions for its exercise and the terms for the calculation of the exit payment. The paper emphasises that both legal frameworks employ conceptually different legal techniques that limit withdrawal from a private limited company, i.e., by providing either for a narrowly drafted exit right and therefore directly limiting the exit of the minority shareholder, as is the case in Lithuania, or by establishing a general right of exit against limited cash compensation which impedes withdrawal in an indirect way, as is the case in Bulgaria. The article concludes that there is room for significant improvement in both countries when it comes to regulating the exit right of a minority shareholder in a private limited company.

Keywords

• private limited company
• minority shareholder
• exit right
• exit in no-conflict situation
• shareholder disputes