Currently, the main prerequisite for bankruptcy proceedings is law-established limited civil liability. It enables a company owner to carry only limited liability for any of the company’s debts, i.e. be liable only for the value of his/her investments in that company. Therefore, in the event of bankruptcy, the owner’s personal property is not taken when seeking to satisfy the company’s liabilities. The LFMI’s position presents an analysis of whether such a system is just and compatible with property rights protection and whether limited liability could exist, if it was not established by law, plus what problems are encountered by the institute of limited liability.
