Practical Consequences of the Annulment of the Minute of the General Meeting of Partners for Third Parties

Abstract

The General Meeting is a critical governmental body of the capital companies. The decision of the general meeting is a legal document of great consequence; however, the significance of the minutes of the general meeting depends on the ownership structure. The general meeting and the minutes of the general meeting are the main legal activities of the company that have legal consequences for partners as well as third parties in the obligation relationship with the companies. Furthermore, private and public establishments have no unified practice on which transactions of the corporation require the decision of the general meeting and which do not. The separate article of the consolidated law on Entrepreneurs of Georgia regulates the possibility of the rescission of the decision of the general meeting, in the case the partner attends the general meeting and does not give his/her consent to the decision. The purpose of the paper is to determine the judicial practice and juxtapose it with the scientific theory, in particular, to what extent the judicial practice and the theory are close to each other and what consequences it may have in future; the main question arises if third parties will be able to protect their rights and ensure the continuance of the obligatory relationship in case of the annulment of the minutes of the general meeting. The paper discusses the nature and characteristics of the general meeting and the formal and substantial grounds for invalidating the decision of the general meeting; the article examines the judicial practice regarding the relevance of the annulment of the minutes of the general meeting.