Types of deadlocks in a limited liability company and their classification

The article addresses the issue of corporate conflicts in Ukraine, particularly deadlocks, which are becoming increasingly relevant and affecting the investment climate and business development. The author notes that corporate conflicts, arising from disagreements between participants and management, lack a clear legal definition, complicating their resolution. Special attention is given to deadlock types, where neither party can independently resolve the conflict, leading to the blocking of important decisions. The study highlights the main types of deadlock situations, including: at the level of the general meeting of participants (the most common type, associated with the lack of the required number of votes to make decisions); at the level of the supervisory board (in cases of vote parity or when decisions are blocked by individual members); at the level of the collegial executive body (in the absence of a majority to adopt management decisions); between majority and minority participants (conflicts due to an imbalance of influence); between parity participants (50/50 ownership); as well as situations arising from breaches of the corporate agreement. The article proposes a classification of deadlocks based on various criteria, such as the level of corporate governance where deadlock occurs, the composition of participants, the legal basis for occurrence, duration, and impact on the company’s activities. This allows for a deeper understanding of the causes of deadlocks and the identification of effective legal mechanisms for their resolution in limited liability companies with their subsequent consolidation at the legislative level or in practical guidelines for legal practitioners. The author emphasises the importance of integrating international experience to enhance the effectiveness of managing corporate conflicts in Ukraine. Further research may focus on developing legal mechanisms to prevent and resolve deadlocks, as well as identifying shortcomings in Ukrainian legislation and providing relevant recommendations. The research results may be useful for lawyers, managers, and other professionals involved in corporate governance issues.