The Property Consequences Of A Breach Of A Corporate Agreement

  • M.M. Syhydyn
Keywords: a breach of acontract, a corporate agreement, a penalty, a compensation, a compulsory sale of corporate rights.


The article deals with the investigation of issues related to the peculiarities of application of the property consequences in case of a breach the obligations arising from the corporate agreement. In particular, such property sanctions as a penalty and a solid amount of money (compensation) are investigated.It's determined that because of the civil law nature of corporate contract a penaltytheoretically can be considered as one of the legal consequences of the breach of contract.Alsothe articlestates that due to the organizational characterof a corporate contract a compensation of damages as a legal consequence of a breach of the contract can cause significant difficulties in the event of its application. An alternative mechanism for restoration of violated rights of a corporate contract may become apayingof compensation.

Also the author analyzes the applicability of such legal consequence of the breach of a corporate agreement as compulsory sale of corporate rights by a member of a corporation.The author notes that this sanction could become efficient and effective stimulus forall partiesof a corporate agreementto fulfillproperly their obligations under the contract.