What is an example of stock corporation law

Stock Corporation Act

The Stock Corporation Act: The legal basis for all stock corporations

The Stock Corporation Act forms the legal basis for all legal issues that apply to stock corporations.

It sets out the duties of the board of directors and supervisory boards of a stock corporation and which requirements must be met in order to form a stock corporation.

How is the Stock Corporation Act divided?

  • First book (§§ 1 to 277)
All relevant laws on stock corporations are listed here.

  • Second book (§§ 278 to 290):
This book deals with the subject of “limited partnership based on shares”.

  • Third book (§§ 291 to 393):
This is where the legal situation is discussed for related companies.

  • Fourth book (§§ 394 to 410):
In the last part of the Stock Corporation Act, special, final and criminal provisions are dealt with and regulated by law.

Why a separate code of law for joint-stock companies?

The corporate form of the stock corporation is complicated. It is liable as a separate legal person, d. H. that liability is not with personal assets, but with corporate assets. Since the capital of a stock corporation is divided into shares, many individuals are usually liable with their assets. For this reason, stock corporations must be subject to generally agreed regulations in order to guarantee economic protection.

Requirements for a public company

In order for a stock corporation to be admitted, certain requirements from the Stock Corporation Act must be met. The main requirements are in particular:

  • At least one person must take over the shares against a contribution.
  • The company must have the suffix Aktiengesellschaft or AG in its name.
  • According to the German Stock Corporation Act, the registered office must be in Germany.
  • The share capital must be at least 50,000 euros.
  • The minimum issue amount of a share must not be less than one euro per share.

In addition to the requirements, the Stock Corporation Act also contains laws on accounting, the appropriation of profits and the legal relationships between the company and shareholders.

Stock Corporation Act - Summary

  • The Stock Corporation Act is the most important code for stock corporations and limited partnerships based on stocks.
  • In addition to the formation, it also regulates the economic obligations and disclosure guidelines for stock corporations.
  • It serves as a regulator for companies trading on stock exchanges and protects against economic damage.