Rights and Obligations of Management in LLC

Added on - 31 May 2021

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Running Head: RIGHTS AND OBLIGATIONS OF MANAGEMENT IN LLC1COMPARISON IN RIGHTS AND OBLIGATIONS OF MANAGEMENT LLC INKUWAIT AND TURKEYStudent NameSchool Name
RIGHTS AND OBLIGATIONS OF MANAGEMENT IN LLC2Limited Liability Companies in KuwaitManagement of the Limited Liability CompanyAccording to article 103 of Kuwait companies Law, the company shall be managed byone or more managers, appointed by the company contract from among partners or third parties.Article 104 stipulates the conditions for the dismissal of the manager through the court ruling atthe request of the partner(s) with one-quarter of the membership interests in the capital, for thereasons listed below (Emir of Kuwait Al Sabah, 2017):i.Violation of limitations and scope of work as set by Article 106ii.Commits an act of fraudiii.Commits error is resulting in damages.Article 105 outlines the powers and obligations of the managers in LLC as by default havingthe power to carry out the tasks and actions necessary to the attainment of the company’sobjectives. It further expounds that the manager is jointly liable towards the company, thepartners and third parties for any breach of company contract and mismanagement. Article 106explains the limitations of the manager ((Emir of Kuwait Al Sabah, 2017). He/she unlessotherwise directed by the company contract or through directives of the general meeting ofpartners, shall not assume management of competing company with similar objectives, or enterinto a contract on his or third party’s behalf, or carry out any activity that is similar to theactivities of the company.Limited Company in TurkeyManagement of Limited Liability CompanyThe management of LLC is regulated under articles 623 to 630 of the Turkish CommercialCode No. 6102, in which there is a management and representation scope of the company.According to TCC, all the shareholders, the natural organ principal, of the company are per semanagers, has been abandoned and the elected organ principal adopted (ADMD Law OfficeOrhan Yavuz Mavioglu, 2007). The manager may be appointed during incorporation orafterwards in the general assembly. It further explains that the management and representationmay be left to a shareholder or non-shareholder persons that have been elected. However,
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