While corporations also limit personal liability, LLCs are simpler and more flexible: They don't require a boardofdirectors, shareholder meetings and other managerial formalities.
Positions on its boardofdirectors are sinecures, boardmeetings are scripted in advance, and the directors don't hold management accountable in the way American boards now do.
Preferring to silence their critics rather than answer them, Gazprom's managers have suggested changing the rules ofboardmeetings to stop directors telling outsiders what happens there.
The mere threat of such suits may gum up boardmeetings as directors pay more attention to protecting themselves from legal action and less to doing what they get paid to do taking risky decisions that may sometimes prove wrong.