One of the main features of the limited liability company (LLC or société à responsabilité limitée (“SARL”) is the limitation of the liability of the partners of the company to the contributions made to the company. The shareholders are only liable up to the amount of their contributions. The general pledge/security of the company's creditors (gage des créanciers sociaux) is constituted by the company's assets, excluding the personal assets of the shareholders (this is also known as “corporate veil”).
The SARL is less complex to operate and less costly, in terms of publication obligations, than the public limited company (société anonyme or SA).
References: What is a limited liability company? December 3, 2020, Bertrand Mariaux; Articles 710-1 et seq. of the law of 10 August 1915 on commercial companies as amended.
*Podcast #319:
*YouTube Video 308|:
Bertrand Mariaux, Avocat à la Cour, LL.M. (hons.)
Prestation de serment (Swearing-in oath): Luxembourg (2011), Certificat d’Aptitude à la Profession d’Avocat, École de Formation professionnelle des Barreaux de la Cour d’appel de Paris (2009), Bond University (LL.M. (distinct.), International Legal Practice, 2010), Université Sorbonne Paris Nord & University of Limerick (Master in European & International Law - major in economics, 2008), certified Expert in Microfinance (Frankfurt School of Finance & Management, 2015), social entrepreneurship (University of Oxford, 2015 & The Wharton School of Social Policy & Practice, 2014) and social & solidarity economy (International Labour Organization Academy - Social & Solidarity Economy, Organisation Internationale du Travail - Économie Sociale et Solidaire, 2017)
Contributor: Cédric Buisine, Avocat
Editor: Hannah Seulgee Jung