Limited Liability Companies (1998–2018): Justice versus Common Law

Abstract

Russia’s transition to market economy demanded new legal regulation of civil turnover and entrepreneurial activity. In 1994, the first part of Civil Code was adopted and it stipulated main provisions on legal entities as well as rules on limited liability companies adopted from Germany as mentioned above. As from this time, one may speak about stage I (1994–January 1998) in the development of legislation on limited liability companies known for providing platform for regulation of legal entities, including limited liability companies, as an organizational and legal form. It was determined that a limited liability company is a company established by one or several persons with authorized capital divided into shares defined per size by constituent documents.