The management company is, in legal terms, a joint stock company, which is distinct from the operating company, i.e. the company carrying out the main activities. The management company is generally a corporate and fiscal tool used to protect the assets of a shareholder from the operating company.<\/p>\n
Indeed, the management company serves mainly to divide the assets of the operating company from the assets of the shareholder holding the management company. In this way, these assets are protected from the risk that they could incur by remaining in the operating company. Moreover, a management company also aims at protecting the operating company by protecting the assets of the company from the personal creditors of the shareholder.<\/p>\n
Another advantage of the management company is the anonymity it provides. By investing or becoming involved under the management company, a shareholder retains anonymity and invests on behalf of the management company. Thus, the management company can provide additional security by providing increased confidentiality for the shareholder or investor using it.<\/p>\n