On the authorized capital of a business entity and the rules governing its payment

The article is devoted to the criticism of the function of the authorized capital as a guarantee to creditors for their claims against the debtor society. The article provides argumentation that the authorized capital does not and did not perform such a function. Further, the provisions of the Federal Law of February 8, 1998 "On Limited Liability Companies" are considered, which regulate the time and procedure for the payment of the authorized capital, the time and procedure for the transfer of the share to the company, the period for the distribution of the share of the company among the participants who paid their share of the capital or proposals for the acquisition of such a share by members of the company or third parties, if there are relevant provisions in the charter. As a result, the conclusion is drawn about the need for a different, more flexible formulation of the relevant norms that would allow maintaining and not destroying the civil turnover of shares in limited liability companies.

limited liability company, joint-stock company, authorized capital, due date for payment of the authorized capital, subsequent payment of the authorized capital, transfer of the share to the company, distribution of the share between the participants