Article language: English.
Abstract
The Legal Capital is able to serve as a guarantee for creditors while protecting companies from the risk of potential bankruptcy when it meets certain standards. However, whether to or not to apply these standards is a matter of debate. This issue in question forms different approaches in many jurisdictions from Europe to America. Meanwhile in national legislation the requirements that the legal capital must pay are measured by the ”interest of creditors”. Since this statement is rather vague, the Azerbaijan legislation requires more thorough regulation of the rules of legal capital for effective protection of creditors’ interests. Thus, the article examines different jurisdictions and the function of approved capital requirements in ensuring the financial stability of businesses and safeguarding the interests of creditors in order to close this gap. At last, taking into account the issues caused by the absence of precise minimum ammount of legal capital in Civil Code of AR, it proposes specific recommendations.
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Azərbaycanca