The Issues of Nature of Shareholder’s Rights to the Property of Corporation
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Abstract
The problem of the ownership rights of shareholder to the property of company is very important for the Lithuanian law science, practice and has a direct impact on the economy. The legislator stated in Civil Code of Lithuania (art. 2.45) that a shareholder does not save any ownership rights to the property of company, but only has liability rights and obligations related to the property of company. This position of legislator is not accurate enoughfrom the theoretical point of view. The issues of this article are whether the rights of shareholder to the property of company are ownership rights or liability rights, what is the theoretical and historical basis of every view, what are the practical consequences and how the doctrine and legal regulation should be developed.
Shares is the financial property of shareholder. In the article the historical development of the legal institute of financial property is shortly introduced. Company is a fiction of person as well as a share is the fiction of thing. The fiction of share derives from the fiction of juridical person. The fiction is an instrument for the including into the juridical sphere such phenomenons of economy and social life, that did not exist when the system of law was created in order to save the system of law. But fictions create new legal problems and demand very flexible and accurate approach to the arising legal problems. Otherwise, fictions begin to serve the law only, but not the objects of the law.
In the article the nature and features of shareholder's rights is theoretically analized and the conclusion of this analysis is that these rights have the features of ownership as well as the features of liability rights, so the relations of shareholders and company have to be regulated very accurately. On the other hand all problems could not be solved by regulation only, the role of courts putting in practice the laws and legal doctrine is very important.
Shares is the financial property of shareholder. In the article the historical development of the legal institute of financial property is shortly introduced. Company is a fiction of person as well as a share is the fiction of thing. The fiction of share derives from the fiction of juridical person. The fiction is an instrument for the including into the juridical sphere such phenomenons of economy and social life, that did not exist when the system of law was created in order to save the system of law. But fictions create new legal problems and demand very flexible and accurate approach to the arising legal problems. Otherwise, fictions begin to serve the law only, but not the objects of the law.
In the article the nature and features of shareholder's rights is theoretically analized and the conclusion of this analysis is that these rights have the features of ownership as well as the features of liability rights, so the relations of shareholders and company have to be regulated very accurately. On the other hand all problems could not be solved by regulation only, the role of courts putting in practice the laws and legal doctrine is very important.
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Articles
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Authors retain copyright of their work, with first publication rights granted to the Association for Learning Technology.
Please see Copyright and Licence Agreement for further details.
