A Limited Liability structure can be greatly important to SMEs and offers protection to directors and shareholders that are heavily invested in a business. Limited Liability is a legal structure whereby shareholders or directors are formally responsible for their company’s debts only over the value of their shares.
The directors will only be liable for debts of a certain quantum, this is up to the value of the shares they hold in the business. Incorporating as a limited company provides shareholders and directors with particular fiscal and legal protection from any upcoming company bankruptcy issues.
To be structured as limited liability, a business must be incorporated at Companies House similar to the Limited Liability Company (LLC).
The purpose of insolvency is to promote the restoration of the solvency of the debtor ( including a natural person as a debtor) and the protection of the interests of creditors in the event of limited solvency or bankruptcy of the debtor by measuring the interests of the person in fiscal difficulty and creditors.
The purpose of establishing an insolvency register is to ensure public access to the bankruptcy case. Members of the Board of Governors, members of the Board, will profit from instructional material prepared by associates of the judicial system from the Insolvency Control Service.
The insolvency register shall record the information specified in the applicable nonsupervisory enactments regarding the development of bankruptcy proceedings directors, bankruptcy realities, legal protection proceedings, out-of-court legal protection proceedings, bankruptcy proceedings of a legal person, and the bankruptcy process of a natural person.
Given that the duration of bankruptcy proceedings may be several times, as well as the fact that bankruptcy proceedings are governed by different laws and regulations in a fairly short period, the applicable legal vittles shall be subject to the opening of bankruptcy proceedings until 31st December 2007, from 1st January 2008 to 31st October 2010 or from 31st October 2010. 1st November. In bankruptcy proceedings initiated by 31st December 2007, the vittles of the Law on the Bankruptcy of Companies and Companies shall apply. Legal protection proceedings and bankruptcy proceedings initiated between 1st January 2008 and 31st October 2010 shall apply the vittles of the Law on Insolvency in force during that period and the laws and regulations issued on the basis thereof. On the other hand, the current Law on Insolvency applies to proceedings initiated after 1st November 2010.
Records of bankruptcy proceedings initiated under the Law on the Bankruptcy of Companies and Companies by 31st December 2007 shall not be planted in the insolvency register. The entries mentioned over can be planted in the Commercial Register or the Enterprise Register journal, independently.
The insolvency register shall correspond to the below sections:
- Directors in which information on directors entered in the insolvency register is available given name, place of practice address and other contact details, document number, date of issue, and term of validity;
- Search in which it’s possible to seek information from the insolvency register about a specific entity (trafficker, company, association, natural person, etc.). In the statement menu, you can see all entries made in the insolvency register regarding the proceedings in question;
- Journal in which you can view the entries made on a given date in chronological order through a timetable. You can also see all the entries in the register of bankruptcy regarding the proceedings in the statement menu with a particular reality. Under the heading ‘Journal’, under the heading’ Yearly Journal’, you can see the entries made within the month in chronological order.
The Judicial action plan is approved by the Court in Article 50, with which the deadline for submission is within five days of the decision on the perpetration of the legal protection process of insolvency.
The enrollment dynamic of limited liability companies was declining in the period from 2011 to 2017 but at the same time, the number of liquidated companies has constantly increased. As a result, the legislator made some important advancements in the nonsupervisory acts and it helps to do better account and financial statements during insolvency proceedings, but some further advancements should be done in the future (to determine that financial statements should be submitted to the State Revenue Service).