The reputation of the GmbH (approx. close corporations) in legal relations is rather controversial. On the one hand, given the high and still increasing number of registrations, this legal from appears to be providing the best platform for business operations. On the other hand, however, its image is spoiled by the fact that more than often it covers little trustworthy businessmen for whom the limitation of liability means the actual enterprising reason. In most serious cases the jurisdiction seeks to induce direct liability of controlling shareholder in order to achieve proper results. However, these attempts to "pierce the corporate veil" are not always successful. In comparison to stock corporations limited liability companies are of rather "personalized" nature, as shows the shareholders' ability to largely influence the management. For middle-sized business the legal form of GmbH is indispensable.

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