Business I / Limited Liability Companies (S.L.)
Practice question · Multiple choice

The S.L. restricts transfers of participations by default while the S.A. allows shares to move freely. What difference in purpose does that encode?

Hints
  1. Ask who each form was designed for, then ask what those people would fear.
  2. Would a founder of a three-person firm want a stranger to arrive as co-owner?
Show the answer

D. The S.L. is built for partners who chose each other

Why

Intuitu personae, the identity of the co-owners is part of the bargain in a small firm, and the pre-emption right lets the others buy rather than accept an unknown partner. The S.A. faces the opposite problem, since capital from strangers requires an exit they can use.

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