The GNS withdraws the bill on subsidiary liability of founders of LLCs

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In Kyrgyzstan, a decision was made to withdraw the draft law that proposed the introduction of subsidiary liability for the founders of limited liability companies. As reported by the press service of the State Tax Service (STS) of the Kyrgyz Republic, this decision is aimed at conducting a more thorough analysis of its provisions, studying international practices, assessing potential economic and legal consequences, as well as taking into account the opinions of business representatives and the expert community.

According to current legislation, participants in limited liability companies (LLC) bear the risk of losses only within the limits of their contributions to the authorized capital and, as a rule, are not liable for the company's obligations with their personal property. This legal regulation was created to support entrepreneurship and promote business development.

Nevertheless, the authorities noted that such a situation sometimes leads to the use of this organizational and legal form by unscrupulous individuals to evade obligations to the state, creditors, or counterparties. In this regard, it was proposed to amend the legislation to introduce personal liability for the founders of LLCs for the tax debts of companies. However, this proposal sparked widespread public discussion and criticism from the business community.
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