Limited Liability Company Case Study

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2. THE FEATURES OF THE LIMITED LIABILITY COMPANY Limited Liability Company, along with other types of business entities, as well as business partnerships, cooperatives, state and municipal unitary enterprise is a commercial organization, namely organizations that pursue profit as the main goal of their activities and distributing the profits among the participants. This limited liability is characterized by the fact that the current (operational) management in the company (as opposed to partnerships) is transferred to the executive body, which is appointed by the founders of the company. For the participants of the company retained the right to the management. Shares entitle the participant to participate in the management of the company and…show more content…
One of the fundamental principles of the LLC is to reduce extra costs and protect each MBM’s private property. Participants of Limited Liability Company bear the risk of losses which can arise at them in connection with activities of society, only within the deposits to its authorized capital. Property of Members of the Company is separated from the property of a limited liability company, and during the bankruptcy of the company, its members risk only within the value of their contributions. The limited liability principle does not allow creditors to rely on any other property besides the company's property. An important feature of a limited liability company is the fact that by its nature it is a closed business entity and assumes a stable structure of members. Due to that reason that creditor can bring one lawsuit against MBM jointly instead of separate claims, can be saved funds and time at…show more content…
This action allows shareholder or MBM to transfer all assets (movable or immovable) to other newly established company. This move helps to protect the assets of a shareholder or MBM from the creditors or other institutions which are trying to confiscate it, in order to fulfil the necessary tax debt by acquiring shares into their own asset. Eventually, creditors are not able to confiscate or even arrest a property, as all valuable shares were transferred to other companies and nothing could be done by their side in such a situation . Limited liability Company as the owner has the right to make at discretion concerning the property belonging to it any actions which are not contradicting the legislation and not violating the rights and the interests of other persons protected by the law, to transfer the property of the company to another person or legal entity. The company may also transfer their property into trust management to another person (the trustee). In this case, the transfer of property into trust management does not involve transfer of ownership to the trustee, who is obliged to manage the property in the interests of the owner or a third

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