On Limited Liability Company

According to Section 1, Art. 29 of Law N 208-FZ of society has the right, and in some cases, must reduce its share capital by reducing the par value of shares or reducing their total number, including through the acquisition of shares. Decrease in share capital of the company through the acquisition and redemption of shares is allowed, if possible under the charter of the company. By virtue of paragraph 4 of Art. 1999 Civil Code and Section 6 of Article. 35 of the Law N 208-FZ, if at the end of the second and each subsequent fiscal year the net assets of the company is less than the capital, it must declare and register in the prescribed manner reduce its share capital to a value not exceeding the value of net assets. If the value of these assets of the company becomes less certain statutory minimum charter capital, the company be liquidated. Similar provisions in for limited liability companies and companies with additional liability contained in the Federal Law of 08.02.1998 N 14-FZ 'On Limited Liability Company'. Justification for the strict rules of law, as 'the Company shall be liquidated', can be found in the provisions of Art. 2 Civil Code: entrepreneurship is an independent, carried out at your own risk activities aimed at the systematic profit from the use of property, sale of goods, works or services to persons registered as such in the manner prescribed by law. Loss-making activities of the society does not match its intended as a commercial entity (Sec.