In a catering company, a long-standing corporate conflict exists between the participants. One of the parties to this conflict filed a lawsuit against the general director, considering their actions to spend the company’s funds in the total amount of more than 88 million rubles illegal.

Protecting the interests of the company and its head, we pointed out that the plaintiff had chosen an improper way to protect the right. By law, the method of protection chosen by the plaintiff must be proportionate to the violation and meet the objectives of restoring the violated right. At the same time, the law does not provide for the possibility of recognizing the actions of the general director of the company as illegal or improper.

The Arbitration Court of St. Petersburg and the Leningrad Region agreed with our arguments and refused to satisfy the claim, noting that the recognition of the general director’s actions to unreasonably transfer funds to third parties as illegal does not lead to the restoration of the plaintiff’s rights, while the purpose of putting into effect the legal mechanism of judicial protection is precisely the protection by a judicial act and the restoration of the relevant rights. The court decision was not appealed and came into force. At our request, the court subsequently recovered court costs from the plaintiff in the amount of 100,000 rubles.

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