Privileged status of LLCs upon formation applies to insolvency

Insolvency & Restructuring

ILO Newsletter 3. Oktober 2014, Dr. Alexander Isola

In order to facilitate the formation of LLCs, the Tax Amendment Act 2014 introduced a formation privilege in the Limited Liability Companies Act, which reduces shareholders´ risk capital from €35,000 to €10,000 while the privilege applies. This reduction of shareholders´ economic risk also applies in insolvency cases. As a result, shareholders need not pay more where insolvency proceedings are opened within the 10-year period.


Dr. Alexander Isola

M.C.J. (NYU) Partner