Lion company


Lion company (lat. societas leonina) - a partnership in which one partner is excluded from participation in losses and the other from profit sharing.

The name "lion company" comes from ancient Rome, and since the days of Ulpiana the contracting of lamb companies has been forbidden.

In Poland, a company agreement providing for the exemption of a shareholder from profit participation will not apply in this respect, as in accordance with Art. 51 § 3 of the Polish Code of Commercial Partnerships and Exchanges may exempt a shareholder from participation in losses, but pursuant to § 1 of the same contrario law, he can not deprive (or limit) his participation in profits. Moreover, the conclusion of a "lion company" would be contrary to the principles of social coexistence (Article 58 of the Civil Code).

In other countries, the possibility of concluding a company lamb may be prohibited (eg Italy) or permitted (eg Austria, in accordance with the Allgemeines bürgerliches Gesetzbuch).

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