Student, Baku State University
Address: 33, Academician Zahid Khalilov Street, Baku, AZ 1148, Azerbaijan
Email: [email protected];
UOT 347.72
CHARTER CAPITAL AND THE LIMITS OF CREDITOR PROTECTION IN AZERBAIJANI
CORPORATE LAW
Charter capital performs two distinct legal functions. Within the company, it measures the
members’ contributions, participation interests and economic interests; in relation to third parties,
it represents the minimum amount of property that secures the interests of creditors. Article 90.1
of the Civil Code uses precisely this language for a limited liability company (LLC), while Article
103.2 does so for a joint-stock company (JSC) [2]. Nevertheless, the amount stated in the charter
does not necessarily correspond to the cash in the company’s bank account, its current assets or
its solvency. Assets may decrease through use, disposal or loss, while nominal capital may remain unchanged.