أسئلة وأجوبة
Protection of investment in LLC business
I did partnership in LLC business with one Indian last year. Recently I asked him to return my investment as he was not giving any reward of my investment. He agreed to return it. But now he is absconding because he owes some amount to an old partner who filed a police case against him.
What should I do now to protect my investment or to avoid further loss?
My 2nd question is: which percentage of shares will apply in case of loss? Trade license shows 15% my shares.
Dear Sir/Madam,
Please note that my response to your question will be purely from an academic point of view based on the limited preliminary information that has been provided. Therefore, it should not be treated as a legal opinion for the want of adequate knowledge and review of relevant documents when read with the applicable laws.
Article 71 of Federal Law No. 2 of 2015 states that the holder of the capital of the company will not be liable for the obligations of the company other than to the extent of the capital that has been invested. This means that if the company makes a loss, you would only be liable for the capital that has been invested as set out in the Memorandum of Association.
However, to provide you with adequate advice on how you can protect your investment and limit your liability in this situation, we will require more information about the structure of the company, and will need to review the Memorandum of Association, any shareholder agreements that you have with the other partner(s), and any other company related documents.
