Effect of European Directives on Legal Regulation of the Limited Liability Company in the Czech Law

A limited liability company has the basic features of capital companies. But compared to the joint stock company, which is a typically capital company, it shows certain features evoking a personal company (for example a change of the memorandum of association may be still realized by an agreement of all members, members may be bound by the memorandum of association to execute the objective, for which the company was established, by means of their personal activities). Hence the limited liability company is on the border between capital and personal companies and it represents an interim form, which combines the advantages typical for both groups of companies – members of the limited liability company do not assume unlimited liability for the company obligations but they are not alienated from the company to such extent that they would not be known to the company and the company management would be assumed by third persons.