Joint-Stock Corporation

Stock corporation - a legal form suitable only for large companies? That isn't always the case. In reality an "AG" (German abbreviation for "Aktiengesellschaft" = Stock corporation) can be a very good fit for a mid-sized company, and often preferable to a "GmbH" (Gesellschaft mit beschränkter Haftung / Limited liability corporation). In fact, it's unbeatable with respect to

  • allocation of competence
  • raising of capital
  • arrangement of succession

In day-to-day operations an "AG" is no more complicated to run than a "GmbH".

If

  • you are looking for fresh money, although intending to keep the company under your control,
  • your bank comes up with the suggestion to establish an Advisory Board,
  • you are thinking about a gradual transfer of your company to the next generation
  • you simply want to enhance the prestige oft your company

then we should talk about the advantages of  a stock corporation.

 

  • annual stockholders' meeting (ASM)
  • articles of association
  • authorized capital
  • capital stock
  • conversion
  • going public
  • hive-off vehicle
  • incorporation
  • Joint-stock Corporation
  • liability
  • non-voting bearer preferred shares
  • registered shares with restricted transferability
  • service contracts for the Board of Directors
  • squeeze out
  • Supervisory Board