Detailed characteristics of LLC with two or more members | iGuide

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What is a limited liability company with two or more members?

A limited liability company with two or more members is a popular type of business with its own unique characteristics. This article will explain in detail the concept of a limited liability company with two members, its outstanding features and the benefits that this type of business brings to its members. Understanding a limited liability company with two members will help you make appropriate business decisions.

1. Pursuant to the provisions of Clause 7, Article 4 of the Law on Enterprises 2020 as follows:

Limited liability companies include single-member limited liability companies and limited liability companies with two or more members.

Accordingly, a limited liability company with two or more members is a type of limited liability company.

Article 46 of this Law has a more specific definition of a limited liability company with two or more members as follows:

A limited liability company with two or more members is an enterprise with from 02 to 50 members who are organizations or individuals. Members are responsible for the debts and other financial obligations of the enterprise within the scope of the capital contributed to the enterprise, except for the cases specified in Clause 4, Article 47 of this Law. The capital contribution of a member may only be transferred in accordance with the provisions of Articles 51, 52 and 53 of this Law.

2. Can a limited liability company with two or more members issue shares?

Pursuant to the provisions of Article 46 of the Law on Enterprises 2020 as follows:

Limited liability company with two or more members

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2. A limited liability company with two or more members has legal entity status from the date of being granted the Certificate of Business Registration.

3. A limited liability company with two or more members may not issue shares, except in the case of conversion into a joint stock company.

4. A limited liability company with two or more members may issue bonds in accordance with the provisions of this Law and other relevant legal provisions; the issuance of individual bonds must comply with the provisions of Articles 128 and 129 of this Law.

Accordingly, a limited liability company with two or more members is not allowed to issue shares, except in the case of converting into a joint stock company.

Thus, it can be seen that a limited liability company with two or more members will not be allowed to issue shares according to current law unless it is converted into a joint stock company.