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Squeeze Out Concept

Risk to be squeezed out

 

Uzbek LLC Law has a similar paragraph with the Russian LLC Law on a possibility to squeeze out (or exclude) a participant from the company. In particular, the participant(s) holding (in aggregate) at least 10% interest in the charter capital of the company may claim through court procedures to exclude/expel the other participant which grossly violates its duties, or for actions or non-actions significantly impedes company’s or make unfeasible company’s operation. Pursuant to Uzbek LLC Law, such participant may be expelled only based on a decision of court and its participating interest must be acquired by the company at the actual value which is calculated based on the balance value of net assets for the latest accounting period.

 



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