Situation:
A company holding valuable real estate in the Czech Republic was owned by two shareholders with equal stakes (50/50). Shareholder B unlawfully took exclusive control of the company by preventing Shareholder A from voting at the general meeting, dismissing the company’s long-standing managing director, and appointing himself as the sole executive. Before the illegality of this takeover could be proven through multi-level court proceedings, Shareholder B conspired with an acquaintance, who filed several lawsuits against the company for high and questionable claims. Since the company was at that time controlled by Shareholder B, it offered no defense in court, allowing them to jointly obtain enforcement titles to extract the real estate assets from the company.
Client’s Request:
The client’s goal was to prevent Shareholder B from using final court judgments to extract the company’s real estate assets, to stabilize the company’s operations, and to restore Shareholder A’s control over the company.
Our Solution:
Through several motions for retrial due to procedural defects, we gradually succeeded in overturning all previously issued judgments that had ordered the company to pay substantial sums to Shareholder B’s acquaintance. We also managed to halt the enforcement proceedings through which the company’s assets were to be extracted. During this time, we effectively protected the company from further attacks by Shareholder B and successfully initiated criminal proceedings against him, conducted by the authorities of the Swiss Confederation. We also launched legal proceedings to expel Shareholder B from the company and filed lawsuits against him for damages amounting to millions of CZK.
Result:
The result of our work was the successful protection of the company’s assets. We also achieved the departure of Shareholder B from the company and secured compensation for the damages caused, including a substantial portion of the legal representation costs.