Forced withdrawal occurs through the exclusion of a participant at the request of other members whose combined shares make up at least ten percent of the company’s charter capital. Exclusion is only possible through court proceedings. The moment of exclusion is the date when the court’s decision to exclude the participant becomes final. The defendant in such cases is the participant against whom the exclusion claim is made. The claim can be filed against multiple defendants, with a separate state duty paid for each claim.

Consequences of exclusion of an unscrupulous participant

The participant is excluded from the company from the date the court decision on their exclusion takes legal effect. Their share passes to the company. The company must pay the excluded participant the value of their share and a portion of the company’s profit attributable to that share, calculated from the date of exclusion until settlement. Alternatively, the company may transfer property instead of paying profit. The settlement date is when the share value is paid or property is transferred, as decided by the general meeting by majority vote.

Payment or property transfer can be made after the approval of the annual report for the year of exclusion. The settlement period is up to 12 months from the date of exclusion. The company’s charter must also be amended to reflect changes in ownership and share redistribution.