Commercial Companies and Commercial Transactions
Company Forms
Know the main forms: limited liability company (LLC), public joint stock company (PJSC), private joint stock company, partnership, and sole proprietorship. Understand capital requirements, shareholder liability (limited to capital contribution for LLCs and JSCs), and management structures (managers for LLCs, board for JSCs).
Governance and Transactions
Study the rules on shareholder meetings, quorum, resolutions, and the protection of minority shareholders. Understand related-party transactions, the role of the auditor, and grounds for dissolution. Know the Commercial Transactions Law on commercial acts, the commercial register, trade names, and commercial agency.
Traps
Frequent traps: confusing the number of shareholders required for each form; assuming LLC shareholders are personally liable for company debts; misapplying the "veil piercing" concept; and overlooking that foreign ownership restrictions apply to onshore companies but not to free zone entities. Another trap is confusing commercial agency termination rules with general contract termination.
Rule of thumb
When a question asks about liability, identify the company form first. Limited liability is the default; personal liability arises only through statutory exceptions such as fraud or failure to maintain capital.