The Legal Status Of Limited Liability Company in Republic of Austria

Abstract

Company Law of Austria makes a distinction between partnerships and corporations. The latter are mainly characterized by their status as legal entity which also entails the limited liability of their members for company debts. The limited liability company is the most common type of corporation in Austria.
In the article GmbH’s legal status is presented according to Austrian legislation. Short characteristic of management (executive body), supervisory board (supervisory body) and general meeting (supreme body) is described. Special attention is given to derivative action of minority shareholders and to the authorities of the court in corporate relations.
The author also draws a conclusion that Austrian legislation (concerning LLC),is rather strict because of: 1) nominal capital for foundation of a company is 35 000 euro (while global trend is minimization of minimal nominal capital); 2) statute of limitation for indirect action is only 1 year and is counted from the date of resolution adopting; 3) notarial form of transfer deed; 4) demand of shareholders approval of share’s transfer (depending on the articles of association); 5) demand of shareholders approval of share’s division (depending on the articles of association).