In Re (#03 March 2019)

Crime and Punishment of an LLC Director

Elena Koch, Maxim Karpenko

The main purpose of establishing a limited liability company (hereinafter — LLC), irrespective of its jurisdiction, is limitation of possible liability, particularly financial loses that may occur as a result of the risky nature of entrepreneurship. Being “limited” preserves the personal assets of a company’s shareholders. That’s the main reason why this form of business organization is the most common in the world, and Ukraine is no exception. There were close to 600,000 LLCs in Ukraine as of 1 December 2018.

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