Are limited liability firms abusing authorised representative rules?
The Members Council is the governing body of a limited liability company, and some confusion has arisen as to how the council’s membership is constituted.
Under Article 4.14 of the Law on Enterprises, participants in a meeting of the Members Council must be either: (i) an individual member of the MC or (ii) the authorised representative of a member which is an organisation. This is contrary to the frequent interpretation of the phrase “authorised representative of a member” in Article 51.4, which is often interpreted without reference to Article 4.14 and given to mean that the authorised representative can also represent members who are individuals.
Category: Legal
