Potential stand alone business formats 2 General partnership(offene Handelsgesellschaft, OHG Societe en Nom Collectif (SNC) · Agreement/ contract Between 2 or more persons Assets belong to the partners as a whole(community of goods Mutual agents and managers ● Pursue a common goa (General) partners jointly and severally liable Contributions in kind, in cash or services Universiteit Maastricht
Potential ‘stand alone’ business ‘formats’ 2 General partnership (Offene Handelsgesellschaft, OHG; Societe en Nom Collectif (SNC) • Agreement/contract • Between 2 or more persons • Assets belong to the partners as a whole (community of goods) • Mutual agents and managers • Pursue a common goal • (General) partners jointly and severally liable • Contributions in kind, in cash or services
Potential stand alone business formats General partnership(cont) Advantages easy organisation t easy formation Flexibility Contractual basis Disdvantages Unlimited liability Limited financial resources Continuity? Universiteit Maastricht
Potential ‘stand alone’ business ‘formats’ General partnership (cont.) Advantages + Easy organisation + Easy formation + Flexibility + Contractual basis Disdvantages - Unlimited liability - Limited financial resources - Continuity?
Potential stand alone business formats General partnership(cf. silent' partnership! )(cont) Internal legal relationships: decision making process, profits and losses EXternal legal relationships: binding partners liability schemes Harsh(external) legal regime-Justification No(minimum) capital (preservation) requirements Assets at the disposal of partnerships often remain property of partners in private Note: any clause restricting or even excluding external liability Universiteit Maastricht
Potential ‘stand alone’ business ‘formats’ General partnership (cf. ‘silent’ partnership!) (cont.) - Internal legal relationships: decision making process; profits and losses - External legal relationships: binding partners; liability schemes ‘Harsh’ (external) legal regime - Justification: - No (minimum) capital (preservation) requirements - Assets at the disposal of partnerships often remain property of partners in private Note: any clause ‘restricting’ or even ‘excluding’ external liability?
Potential business formats 3 Limited partnership Societe en commandite simple Kommanditgesellschaft; CV(R) Internal legal relationships: (identical; cf. above) EXternal legal relationships general partners: cf above k limited partners: liable only to the extent of money put in the partnership pot, unless they operate in name and on behalf of the limited partnership (punitive legal effect) Universiteit Maastricht
Potential business ‘formats’ 3 Limited partnership Société en commandite simple; Kommanditgesellschaft; CV(R) - Internal legal relationships: (identical; cf. above) - External legal relationships: * general partners: cf. above * limited partners: liable only to the extent of ‘money put in the partnership pot’, unless they operate in name and on behalf of the limited partnership (punitive legal effect)
Potential business formats 4 Legal persons (limited liability companies) Public company(aktiengesellschaft, Societe Anonyme) Private company (Gesellschaft mit beschrankter Haftung/Unternehmensgesellschaft UG, Societe a responsabilite limitee) Note In some legal orders other legal persons as well can be made use of for business purposes(cf NL: Vereniging and stichting UK: trust; G Treuhandgesellschaft Universiteit Maastricht
Potential business ‘formats’ 4 Legal persons (limited liability companies) - Public company (Aktiengesellschaft, Société Anonyme) - Private company (Gesellschaft mit beschränkter Haftung/Unternehmensgesellschaft UG, Société á responsabilité limitée) Note: In some legal orders, other legal persons as well can be made use of for business purposes (cf. NL: Vereniging and Stichting; UK: trust; G: Treuhandgesellschaft)