{"id":5562,"date":"2025-02-24T11:10:28","date_gmt":"2025-02-24T08:10:28","guid":{"rendered":"https:\/\/www.spiliopouloslaw.com\/%cf%87%cf%89%cf%81%ce%af%cf%82-%ce%ba%ce%b1%cf%84%ce%b7%ce%b3%ce%bf%cf%81%ce%af%ce%b1\/liability-in-a-company-limited-by-shares-under-formation\/"},"modified":"2025-02-24T11:10:28","modified_gmt":"2025-02-24T08:10:28","slug":"liability-in-a-company-limited-by-shares-under-formation","status":"publish","type":"post","link":"https:\/\/www.spiliopouloslaw.com\/en\/business-current-affairs\/liability-in-a-company-limited-by-shares-under-formation\/","title":{"rendered":"Liability in a Company Limited by Shares Under Formation"},"content":{"rendered":"<h3>During the formation phase of a Societe Anonyme (S.A.), or company limited by shares, the company is treated as a partnership among its founders. This classification carries significant legal implications, particularly regarding liability for actions taken before the company\u2019s official incorporation.<br \/>\n<!--more--><br \/>\nLiability of Founders<\/h3>\n<p>During the incorporation process:<\/p>\n<ul>\n<li>The founders bear unlimited and joint and several liability for any actions taken on behalf of the company under formation.<\/li>\n<li>This liability covers both actions and omissions by the founders.<\/li>\n<\/ul>\n<h3>Transfer of Liability to the Company<\/h3>\n<p>After the official incorporation of the company:<\/p>\n<ul>\n<li>The S.A. becomes liable only for actions expressly undertaken in its name.<\/li>\n<li>To assume liability for such acts, the company must formally accept them within three (3) months from the date of incorporation (<em>Article 10(1), Law 4548\/2018<\/em>).<\/li>\n<li>Once the company is incorporated, liability automatically shifts from the founders to the legal entity itself.<\/li>\n<\/ul>\n<h3>Additional Obligations of the Founders<\/h3>\n<p>According to Article 10(2) of Law 4548\/2018, founders are also liable for:<\/p>\n<ol>\n<li>Damages suffered by the company or third parties (whether shareholders or not) arising from:\n<ul>\n<li>Omission of mandatory provisions in the articles of association.<\/li>\n<li>Inaccurate or misleading information during capital registration.<\/li>\n<li>Non-compliance with valuation or contribution requirements.<\/li>\n<li>Annulment of the company, if they knew or should have known about the irregularities.<\/li>\n<\/ul>\n<\/li>\n<li>Claims for compensation are subject to a five (5) year statute of limitations from the date of incorporation.<\/li>\n<\/ol>\n<h3>Conclusion<\/h3>\n<p>A clear understanding of the legal obligations and liabilities of founders during the pre-incorporation phase is essential to mitigate legal risks and to ensure a smooth transition of responsibility to the incorporated company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>During the formation phase of a Societe Anonyme (S.A.), or company limited by shares, the company is treated as a partnership among its founders. This classification carries significant legal implications, particularly regarding liability for actions taken before the company\u2019s official incorporation.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pgc_meta":"","footnotes":""},"categories":[532],"tags":[],"class_list":["post-5562","post","type-post","status-publish","format-standard","hentry","category-business-current-affairs"],"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"spiliopouloslaw","author_link":"https:\/\/www.spiliopouloslaw.com\/en\/author\/spiliopouloslaw\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.spiliopouloslaw.com\/en\/category\/business-current-affairs\/\" rel=\"category tag\">BUSINESS CURRENT AFFAIRS<\/a>","rttpg_excerpt":"During the formation phase of a Societe Anonyme (S.A.), or company limited by shares, the company is treated as a partnership among its founders. This classification carries significant legal implications, particularly regarding liability for actions taken before the company\u2019s official incorporation.","_links":{"self":[{"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/posts\/5562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/comments?post=5562"}],"version-history":[{"count":0,"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/posts\/5562\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/media?parent=5562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/categories?post=5562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.spiliopouloslaw.com\/en\/wp-json\/wp\/v2\/tags?post=5562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}