The State Tax Service withdraws the bill on subsidiary liability of founders of LLCs

Елена Краснова Politics
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In Kyrgyzstan, a decision has been made to withdraw the draft law that would introduce subsidiary liability for the founders of limited liability companies. The press service of the State Tax Service of the Kyrgyz Republic reported this.

As noted by the agency, this decision is due to the need for additional analysis of the provisions of the draft law, familiarization with international practices, as well as an assessment of potential economic and legal consequences. It is also important to consider the opinions of business representatives and the public.

According to current legislation, participants in limited liability companies bear the risk of losses only within the limits of their contributions to the charter capital and, as a rule, are not personally liable for the company's obligations. This legal structure was created to support entrepreneurship and promote business development.

However, the authorities noted that such a situation sometimes leads to some unscrupulous individuals using this organizational and legal form to evade obligations to creditors, the state, or counterparties. In this regard, amendments to the legislation concerning the personal liability of founders of limited liability companies for the tax debts of companies were proposed. However, this proposal caused significant resonance and criticism from the business community.
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