Provisions of the Limited Liability Company According to the Amendment of Law 15-20

Abstract

Limited liability companies (LLCs) have garnered significant attention from business founders, achieving considerable prevalence and surpassing other corporate forms in terms of number. This is attributable to their flexible nature and the protection they afford to individuals wishing to invest a portion of their funds without exposing the remainder of their assets or overall patrimony to risk—particularly the risk of being subjected to the stringent rules governing bankruptcy or judicial reorganization. The amendment was introduced in response to economic imperatives, foremost among them addressing the collapse in oil prices while fostering economic alternatives. It also aims to provide solutions to social challenges, notably by absorbing unemployment and creating non-traditional job opportunities. Accordingly, the provisions governing limited liability companies were revised, affecting fundamental aspects of this corporate form through Law No. 15-20 dated 30 December 2015, which amends and supplements Ordinance No. 75-59 dated 26 September 1975 containing the Commercial Code.