Thursday, January 22, 2009

Doing business in Oman: FAQs on Formation of LLCs

Can pre-incorporation expenses – specifically, the expenses incurred by the shareholders in forming a limited liability company (“LLC”) – be reimbursed by the LLC?

Shareholders may seek reimbursement from the LLC once it is formed for the reasonable expenses they incur during the incorporation process. These expenses may be subject to the approval of the shareholders.

Is the LLC required to have a board of directors or a board of mangers?

As LLCs are a less formal corporate structure than public companies, they are not required to have a board of managers or directors but theymust have at least one manager who may be nominated by one or more shareholders. However, depending on the activities of the company and the preferences of the shareholders, many LLCs do have a board of managers or directors. The constitutive contract and shareholders agreement will specify the powers and responsibilities of the board, as well as the number of board members.