Limited Liability Companies in Romania: De Lege Lata Clarifications and De Lege Ferenda Proposals in Regard to the Forced Execution of ‘Social Parts’ for the Personal Debts of an Associate

  • Emőd Veress Department of Law, Sapientia – Hungarian University of Transylvania, Romania
Keywords: Romanian company law, Law no. 31/1990 on companies, Romanian limited liability companies, debts of company associates, execution of social parts

Abstract

The limited liability company is the most prevalent form of company in Romania. It is similar to the French S.A.R.L. (société à responsabilité limitée) or the German GmbH (Gesellschaft mit beschränkter Haftung), but important differences can be identified in the context of this type as it exists in Romania. This article focuses on a single but very important problem: Can the creditors of associates of limited liability companies enforce their claims by selling or acquiring participation in the limited liability companies of their debtors? And, if so, under what conditions? The problem of de lege lata is controversial, and the author seeks to offer a plausible interpretation of the existing norms, which make the rule effective but, at the same time, preserve the essential and traditional features of the limited liability company. In addition, several alternatives to de lege ferenda proposals are suggested, making this study a valuable contribution to the future development of Romanian company law and offering insights for further comparative research.

Published
2020-06-30
Section
Articles