Tyumen-Elka LLC, which is a shareholder of the Rubber Toy Factory OJSC, filed a lawsuit in an arbitration court declaring the decision of the board of directors to appoint a general meeting of shareholders of the joint-stock company to amend the charter to be invalid.
The general director and members of the board of directors appeared at the hearing from the joint-stock company. Members of the board of directors, acting on behalf of the board of directors, recognized the claim regarding the invalidation of the decisions of the board of directors. The General Director, on behalf of the joint-stock company, admitted that the decisions of the board of directors and the general meeting were adopted with numerous violations.
In addition, five hundred shareholders of the Rubber Toy Factory OJSC filed a motion to be admitted to the process as representatives of the OJSC due to their disagreement with the position of the General Director and member of the Board of Directors.
Who is entitled to act on behalf of a joint stock company? Who is entitled to take administrative actions on behalf of the defendant? How are the powers of the head of the organization? Can shareholders be admitted as representatives of a joint stock company, if so, under what conditions?
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