THE VOLUNTARY DISSOLUTION OF A LIMITED LIABILITY COMPANY - A WAY OF ABUSING THE LAW?
THE VOLUNTARY DISSOLUTION OF A LIMITED LIABILITY COMPANY - A WAY OF ABUSING THE LAW?
Author(s): Andreea Stoican Subject(s): Commercial Law
Published by: Societatea de Stiinte Juridice si Administrative
Keywords: voluntary dissolution; breach of law; law enforcement; liquidation.
Summary/Abstract: Law 31/1990 on companies provides a series of cases that lead to the dissolution of a company either by the will of the associates, either by the decision of the court of law, either by law. As such, even though the cases in which the dissolution can operate by law - therefore imposed by the legal provisions - or through the decision of the court are clearly stated, not the same can be said for the dissolution of a company intervened by the decision of the partners. Due to a more general definition that the legislator gave to this legal means, it created, without anticipating at the moment of the drafting of the legal text, a method for the associates to breach certain legal provisions regarding the rights of their creditors. Therefore, the current study aims to draw the attention on a frequent practice operated by more and more merchants in their trade activity which leads to an impossibility for their creditors to have their debts recovered.
Journal: Perspectives of Law and Public Administration
- Issue Year: 9/2020
- Issue No: 1
- Page Range: 65-69
- Page Count: 5
- Language: English
