What is Joint-stock Company?
Joint-stock company is a business organisation whose capital is divided into transferable shares. Different abbrevations are being used for joint-stock companies such as Inc. in the US, a.s. in Czech republic, S.A. in France or AG in Germany.
The basic attributes of the joint-stock company are:
- joint-stock company is established at least by one founder;
- minimum amount of the company’s registered capital is CZK 2,000,000 (EUR 73,000);
- two models of corporate governance: dualistic and monistic;
- dualistic consists of a Board of Directors and a Supervisory Board (the Board of Directors is in charge of the management of the company’s business, the Supervisory Board supervises the exercising powers by the Board of Directors);
- monistic has only an Administrative Board that determines the basic orientation of the management of the company’s business and supervise its proper execution;
- two types of shares: shares with no special rights (ordinary shares) and shares with special rights (such as different or fixed profit shares or different vote weightings shares);
- optional name (it must not be interchangeable with any already existing name of another company);
- obtaining the trade license is required (unless the company’s business activity includes only management of own property, letting of real estate, residential units and non-residential units or a special permit is required);
- joint-stock company is established by Articles of Association containing basic information about the company;
- the company has to be registered in the Commercial Register.
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