Definition: is the form of the enterprise in which its participants have a common unlimited and mutual responsibility for the company's possible debts. The main feature of an unlimited company is the existence of solidarity, subsidiary responsibility of the founders. The concept of solidarity and subsidiary liability is set out in the norms of civil legislation. The essence of it is that it is complementary to the responsibility of the principal debtor.
Unlimited company in a sentence:
- The conditions for this type of liability within the unlimited company apply only when the firm is liquidated.
- The unlimited company is an inverse form of the enterprise in relation to the limited one.
Synonyms and related words: form of enterprise, limited liability company