Russian Supreme Court Rules in Favor of Minority Shareholder’s Claim for Lost Profits Caused by Majority Shareholder’s Failure to Make MTO
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Key takeaways:
- On 24 May 2018, the Supreme Court of the Russian Federation upheld the payment of compensation for lost profits of a minority shareholder of a public joint stock company caused by failure of the majority shareholder to make a mandatory tender offer.
- The Supreme Court stated that the minority shareholder had been harmed by the majority shareholder’s fault, causing the minority shareholder to lose value in its investment while the majority shareholder and its affiliates had expanded their corporate control.
- The Supreme Court held that compensation for lost profits would put the minority shareholder in the same position had the majority shareholder made the required tender offer and acquired the shares.