I have a question about limited liability and debt collection when it comes to "corporations" in the EP universe. I'm going to leave these examples in the inner part of the solar system, because Jovians, Titanians, and other rimward folks might not honor any of these as a matter of principle.
Let's use as an example Ruster Spaceship Refurbishing LLC ("RSR"), a limited liability company established under Tharsis League authority and headquartered in Olympus.
(1) RSR borrows a large number of credits from the Planetary Consortium hypercorp Solaris as a loan secured on RSR's inventory. RSR has a bad month and defaults, and, due to fire sales in the hopes of keeping business going, there is insufficient inventory to pay off the loan. What keeps Solaris from trying to get the deficiency out of the principals of the LLC, despite the very words "limited liability" within this corporate form?
(2) RSR is owed money by a Venusian entity (transhuman or corporation doesn't matter). Is it possible for RSR, in its own name, to use Morningstar Constellation legal process to collect the debt, or must there be an agent within the MC (or an MC entity who buys the debt) for enforcement?
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Corporate Recognition and Comity
Wed, 2014-11-19 21:49
#1
Corporate Recognition and Comity
Wed, 2014-11-19 23:27
#2
Too much legalese!
Too much legalese!
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Exhuman, and Humanitarian.
Thu, 2014-11-20 00:24
#3
Limited liability does not
Limited liability does not refer to the company but rather to the share holders. LLC essentially boils down to a hybrid between normal corporation and sole proprietorship. So with an LLC if it defaults or bankrupts the liability is completely to the corporation and not the stockholders. thus all capital would be liquidated to pay the debts.
Current international contract law would dictate that it would be conducted under Mornngistar authority