Do the members of LLC have the right to dispose income of commercial activity of LLC remained after tax payment?
The profit obtained by LLC while conducting economic activity means the profit of a legal entity. The profit of LLC is disposed according to the resolution of the general meeting of its members (in case LLC contains of several members). The profit is distributed between the members of the Company. In case the Company consists of one member the resolution concerning profit distribution is made by its single member and in writing. Distribution of net profit of the Company can be carried out quarterly once half a year or once a year. In this regard the laws provide the cases when the Company doesn’t have the right to make resolution concerning distribution of profit or payment of profit, resolution on which distribution was made.
- in case at the moment of payment the Company has characteristics of insolvency (bankruptcy) or in case the Company has specified characteristics by reason of payment;
- in case at the moment of payment the value of net assets of the Company is less than its authorized capital and reserve fund or becomes lesser than their amount by reason of payment;
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