36 Questions
An LLC's liability is independent of the financial liability of each partner
True
A one-person LLC owner has the power and authority of the manager and board of directors
True
The MOA must include the name of partners, company name, headquarters, objectives, capital division, management, company's term, assigning equity stake, and methods of distributing profits/losses
True
The appointment of LLC managers can be managed by one or more managers who can be either partners or third parties
True
The method of management of the company is determined by the MOA or the partners
True
If a manager's position is vacant, a partner can appoint a new manager within 15 days of knowledge of the vacancy
True
Partners can dismiss managers, but if the manager is one of the partners, he cannot vote when it comes to his dismissal
True
The GA will be held at least once a year, 6 months before the company’s financial year ends
False
Partners have the right to participate in discussions and voting based on the number of shares they have
True
Capital will be mentioned in the MOA
True
The company can suspend the rights of equity shares holders until they choose one to be the sole holder
True
The GA will determine how profits are distributed to the partners after deduction if needed
True
Partners have the right to ______ in discussions and voting, and have a number of votes based on the number of shares he has
participate
Information must be confidential & must not cause damage to company or partner or they’ll be liable for ______
damages
The ______ will represent the LLC in front of the court, arbitration tribunals, and third parties
manager
The company is liable for the manager’s acts that fall within the company’s ______
objectives
The GA will be held based on the MOA, at least once a year, 6 months before the company’s financial year ends - Managers or auditor or partners can ______ the meeting, the notification must be sent 21 days before the meeting
request
Limited Liability Company: is a company established by one or more natural or legal person and its liability is independent of the financial liability of each partner - Only the company will be responsible for the debts & obligations that arise out of the business, so neither the owner nor the partner will be held liable except, only up to their ______
contribution
The appointment of LLC managers is under the MOA or Independent Contract Management of the company – The MOA or the partners will determine the ______ of management
method
Partners can go to court to request ______ of manager
removal
The GA will determine how ______ are distributed to the partners after deduction if needed
profits
Capital – capital will be mentioned in the MOA - If the equity shares is held by several people, the company can ______ their rights until they choose one to be the sole holder
suspend
MOA must include: * Name of partners * Name the company. * Headquarters. * Company’s Objectives * Capital and its division among partners * Management of company * Company’s term *Assigning equity stake *Methods of distributing ______/losses
profits
Appointment of LLC managers – it can be managed by one or more managers they can be either partners or third parties - Appointment of managers is under the MOA or ______ Contract
Independent
What does MOA stand for and what must it include?
MOA stands for Memorandum of Association. It must include the name of partners, company name, headquarters, objectives, capital division, management, company's term, assigning equity stake, and methods of distributing profits/losses.
What is the liability of a limited liability company in relation to its partners?
The liability of a limited liability company is independent of the financial liability of each partner. Only the company will be responsible for the debts & obligations that arise out of the business, so neither the owner nor the partner will be held liable except, only up to their contribution.
Can a partner dismiss a manager if the manager is also a partner?
Partners can dismiss managers, but if the manager is one of the partners, he cannot vote when it comes to his dismissal.
What is the requirement for holding a General Assembly (GA) meeting?
The GA will be held based on the MOA, at least once a year, 6 months before the company’s financial year ends. Managers or auditor or partners can request the meeting, and the notification must be sent 21 days before the meeting.
What can the company do if the equity shares are held by several people?
If the equity shares are held by several people, the company can suspend their rights until they choose one to be the sole holder.
Who has the right to represent the LLC in front of the court, arbitration tribunals, and third parties?
The manager will represent the LLC in front of the court, arbitration tribunals, and third parties.
What happens if a manager's position becomes vacant?
If a manager's position is vacant, a partner can appoint a new manager within 15 days of knowledge of the vacancy.
What must partners agree to when applying for incorporation?
When applying for incorporation, a statement where the owners agree to all the legal requirements of incorporation.
How are profits distributed to the partners?
The GA will determine how profits are distributed to the partners after deduction if needed.
What is the responsibility of the company regarding the manager's acts?
The company is liable for the manager’s acts that fall within the company’s objectives.
What rights do partners have in the company?
Partners have the right to participate in discussions and voting, and have a number of votes based on the number of shares they have.
What can partners do if they hold all the shares?
The partners holding all the shares may hold the GA regardless of the prior conditions.
Test your knowledge about Limited Liability Companies (LLC) and One-Person LLCs with this quiz. Learn about the establishment, liability, and management of these business entities.
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