Challenges of the Knowledge Society (May 2018)
THEORETICAL AND PRACTICAL ASPECTS REGARDING LIMITED LIABILITY COMPANIES
Abstract
Limited liability companies represent an important category of companies within the Romanian legislative system. Being on the border between partnerships and the capital companies in terms of legal regime, these categories of companies offer several advantages to their members by taking over the favorable features from partnerships and the capital companies. In this study, we will analyse the essential aspects relating to the legal regime of limited liability companies. LLC was first regulated in 1990, Law no. 31/1990 (of companies) offering a new category of company that takes over the main characteristics of the major categories of companies. While retaining a closed nature in terms of the maximum number of associates, 50, as well as in the matter ofsocial parts, that can not be transmitted except under the strict exceptions provided by law, LLC presents a real advantage over the minimum amount of the share capital , respectively 200 lei, but also in the matter of the liability of the associates, who answer only in the limit of the contribution brought to society. Here are two nuances that place this societal category in a more favorable situation than other forms of doing business. These considerations have led to a significant increase in the number of LLCs in the national economy, moreover, at present, this societal category is the most encountered. In this study, will be mentioned the categories of contribution that can be brought to society as well as the attributions of the representative bodies. The analysis will also cover aspects regarding the facilities offered by the legislator for the young people who open their LLC for the first time. The ability of professionals to conduct a single member LLC business will be analyzed from the point of view of practical considerations, respectively relative to the status of authorized natural person or a sole proprietorship. The advantages of single member LLC will be balanced against the benefits of authorized natural person and sole proprietorship to provide a clear picture between these categories of professionals. In the matter of the practical aspects of the subject, a case will also be examined regarding the dissolution of LLC.
