Reported Losses: The Concept and Content

One of the most important topics for the theory of corporate law is the legal remedies for enforcing corporate rights. Not least, the study of the topic of appropriate mechanisms for the protection of shareholders’ rights in court is intended to develop the most equitable approach to the possibilities of shareholders of commercial corporate organizations, in particular business companies, in cases of violation of property rights of bona fide shareholders. Taking into account this context, in the article the author considers the institute of reflective losses as one of the legal remedies for enforcing rights of a shareholder of a company in case of an attempt of discriminatory withdrawal of assets by another shareholder. In this regard, the theoretical provisions on reflective losses, their correlation with the concept of economic losses, the existing doctrinal understanding of the considered institute in Russian and foreign doctrine are given. The paper also considers English case law in terms of application of the prohibition on recovery of reflected losses. The author makes an attempt to define reflected losses, to articulate the content of the presented concept.