DOING BUSINESS ARTICLES

Part 1: Seal And Legal Representative

2014 Law on Enterprises taking effect from July 1st, 2015 and superseding current Law on Enterprises 2005 regulates material issues in relation to the organization and operation of enterprises. The new provisions on seal and legal representative, among others, are 2 remarkable points which should be paid attention by the enterprises that have or will soon be established.

Dear Valued Clients,

2014 Law on Enterprises taking effect from July 1st, 2015 and superseding current Law on Enterprises 2005 regulates material issues in relation to the organization and operation of enterprises. The new provisions on seal and legal representative, among others, are 2 remarkable points which should be paid attention by the enterprises that have or will soon be established.

Regarding the seal

An enterprise is entitled to have more than one (1) seal and decide the form and content of the seal(s) provided that the name and the code of the enterprise must be reflected. Prior to using the seal(s) the enterprise is required to issue a notification of the new seal sample to the business registration authority for purpose of publication on the national enterprise registration website. The enterprise must, also, clearly provide the management, usage and reservation of the seal(s) in its Charter under Article 44 in the 2014 Law on Enterprises .

Regarding the legal representative of enterprises

The limited liability companies and joint stock companies are entitled to have more than one legal representative. Under Article 13 of 2014 Law on Enterprises, the quantity, management title, rights and obligations of the legal representative(s) must be stipulated in the Charter of the enterprise.

Even though the aforementioned changes grant the enterprise the business autonomy, the enterprise is required to amend and supplement the same in its Charter in order to reflect and realize these regulations in practice.

We are pleased to assist you to amend and supplement your Charter and perform the related procedures to optimize the interests of your enterprise, manager and stockholders/ members as well as to limit the disputes related to the interests and obligations among the stockholders/ members of the company. 

PLF Law Firm 

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