This format of successively formed limited company may be established by contributing an amount less than the initial 3,000 euros of share capital , setting the minimum threshold of deposited capital at one euro and setting a time period for making the remaining capital contributions, with the company already established.
The liability of founding partners, first limitation
For the purposes of legal protection of commercial transactions and the protection of creditors, the partners shall be liable to the company and any creditors it may have in an unlimited manner until the total amount of the fixed share capital has been fully deposited.
This limitation is logical so that the company's creditors have guarantees of payment and that they are not operating with a legal entity without any capitalization. As an college and universities email list additional measure, these companies will have to express in all documentation the incorporation formula using the abbreviation SLFS.
Limitation on remuneration of directors and prohibition on distributing dividends
The other major difference between SLFS and standard limited companies is the prohibition of the distribution of dividends until voluntary reserves cover at least the share capital or until contributions by partners are completed.
On the other hand, a limited company of successive formation may not remunerate partners or directors under any formula, until the share capital has also been covered by non-distribution of results against reserves or by contribution of outstanding amounts by the partners.
Little future for this type of company
Given the limitations described, the ease of establishing limited companies with monetary and non-monetary contributions and the liability risks that this format entails for companies, it is very likely that not many companies will be established in this format , given that, from the outset, they have more disadvantages than advantages.
