COMPULSORY LIQUIDATION OF A LIMITED LIABILITY COMPANY AND LIABILITY OF MEMBERS FOR THE OBLIGATIONS OF THE COMPANY

This paper presents the basic characteristics of a limited liability company and briefly analyses compulsory liquidation of this form of business entity and the consequences of the liquidation. It particularly depicts the provisions of The Companies Act which regulate company members’ liabilty for limited liability company’s obligations and gives a critical analysis of the legal order that all previously suspended court and administrative proceedings continue against a company member. Furthermore, the author claims that enforcement procedures against a limited liability company as an enforcement debtor cannot continue against a company member by default, unless there is a document regulated by the  Article 48 of The Law on Enforcement and Security Interest, which proves the transfer of the obligation under the executive title or the authentic document from the company as an enforcement debtor to a company member.