Abstract

The article analyses the legal nature of a share in the authorized capital of a business entity (corporate share) as an object of civil rights. It identifies practical ways to protect the property rights of spouses to a corporate share in cases where it is an object of joint ownership. As a result of the study, the author came to the following conclusions. 1. A share in the authorized capital of a business entity (a corporate share is an object of civil rights that are free in civil turnover, and therefore, it can be both an object of rights in rem and a subject of obligatory rights. Suppose one of the spouses contributes to the charter capital of a business company at the expense of the marital property. In that case, the corporate share belongs to the spouses on the right of joint ownership. 2. The choice of an adequate remedy will depend on the object of the legal relationship in which the corporate share is involved. If the right to a share is violated, unrecognized, or disputed within the framework of a legal relationship, then the appropriate remedies will be in rem. If the right to a corporate share is violated in a legal relationship of obligation, it can be protected using legal methods of obligation. 3. The substantive methods of protecting the rights to a corporate share as an object of the right of marital property include a claim for recognition of the right to a corporate share, a claim for division of a corporate share, vindication, and adverse claims. 4. Obligatory remedies for the protection of rights to a corporate share as an object of marital property include a claim for recognition of a transaction based on which rights to a share in the charter capital were transferred to a third party as invalid if it was made without the consent of the other spouse. However, the court may only satisfy such a claim if the counterparty to the transaction is in bad faith. In other cases, the spouse whose share was alienated without the consent of the other spouse is entitled to compensation of half the value of the corporate share from the other spouse. 5. In case a spouse who is not a member of a business entity receives compensation instead of dividing the share in kind, the market value of the corporate share determines the amount of compensation. Keywords: marital property right, corporate share, share in the authorised capital of a business entity, remedies, property division agreement, property rights, rights in rem, obligatory rights, authorised capital, corporate rights.

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