Conflict of business owners is a common phenomenon in companies where there are more than one participants. Sometimes the reason is in interpersonal relationships, sometimes – in different views on doing business. There are other reasons.
Such conflicts create obstacles to business development, demotivate staff and adversely affect the company’s reputation. In some cases, the parties to the conflict may take actions to exclude the partner from the company. Continue reading
The Board of Directors as a corporate body is widely represented in joint-stock companies, while in limited liability companies it can be rarely seen. The main reason is the peculiarities of the legal form. An LLC is, first and foremost, a company for the personal participation of owners, while the joint-stock companies combine capital. It is indirect participation in the activities of a joint stock company that requires a collegial body to represent and protect the interests of all shareholders, which is the Board of Directors. However, do not underestimate the opportunities offered to the owner by including the Board of Directors in the organizational structure of the LLC. Its advantages are as follows: Continue reading
The term “business fragmentation”
Before we talk about business fragmentation, I would like to decide on this concept, which today has become widespread both among taxpayers, tax and judicial authorities.
It should be noted that the concept of “business fragmentation” is not defined by any legal document. But, as a rule, all parties understand that the term “business fragmentation” means dividing the economic activity of an economic entity into parts according to some criterion in order to achieve certain goals. Continue reading