What Is A Limited Liability Company

WHAT IS A LIMITED LIABILITY COMPANY?

It is a way to form a corporation in which the liability of members is limited to the amount of their contributions. The personal characteristics of the partners are conserved; partners can provide both goods and capital. By providing a good, no difference is to be paid in the event that this will depreciate.

WHAT MEXCIAN LAW REGULATES IT?

General law of mercantile societies

WHAT ARE THE ESSENTIAL FEATURES?

Contributions can only be in money or goods. Partners do not have to pay a difference for the depreciation of the assets transferred. The partners are liable only to the extent of its contribution for the debts that were to enter society. Requires a minimum of two partners and can have a maximum of fifty. The corporate name must be followed by the words " limited liability company " or its abbreviation " S. de RL" Should have name this is composed by the names of one or more partners, if not include all the words are added and Company or its equivalent. Always include the name of the administrators (Jorge and myself).

Also if one of the partners must be removed and add the word " successors " to the name. Any member can be removed when his vote against the appointment of an administrator outside society. The administrator to delegate his office needs the agreement of the majority of members. The administrator must account every six months unless another frequency has been agreed. The statutes may impose a time limit so that members can receive interest not exceeding nine per cent per annum on their contributions, but only for the period of time required for the execution of the work according to the purpose of the corporation must precede at the beginning of its operations, but in no case shall such period exceed three years. If set in the social contract, the partners must make additional contributions to their initial, the members are entitled to one vote for each thousand dollars of your contribution. Members have the right of first refusal to acquire the stock of another partner. A member may be separated from society when using the signature of the company or their own business capital, for violations of the agreements of the partners or legal provisions for fraudulent or malicious acts against the company, bankruptcy, interdiction or trade disqualification.

HOW THE TO MAKE CAPITAL?

On the sides of which are composed by members' contributions in cash or in goods, they are not negotiable.

HOW TO DEFRENCIATE THE PARTNERS?

Members can demonstrate their involvement with the charter, with a record of the Public Registry of Property and Commerce or registration in the Register of Members. Who does not appear in these documents is not considered a partner.

HOW IS ADMINISTRATED?

Individual or collegial manner, there may be a manager (individual) or a board of managers (collegiate). When partners belong to the administration may have a fee. The members of management who are not members will be considered as employees of trust and receive a salary. (See module work)

Managers are accountable to society and are accountable for all damages that result from reaching mismanagement. You can require managers to give a guarantee to support its management. Managers must at all times be loyal to society.

WHAT IS THE PARTNERS ASSEMBLY?

It is the highest authority of the company and is made up of all members. It is the decision maker. Handles:

The review and approval of the Balance Sheet (economic), decide on the shape on the distribution of profits.

Appoint or remove managers. Require accountability managers. Start a liability action against managers.

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