Basic information
Joint Stock Company is company with basic capital allocated on
certain number of stock. Joint Stock Company is legal title of cleanly capital
company almost without any personal elements. Legal regulation of Joint Stock
Company is embedded in Business Code. Common base for all trading companies is
in § 56 and consecutive. Particular definition of Joint Stock Company is
determinate in § 154 and consecutive.
Trading company
Trading company of co-partnership has attribution "akciová
společnost", which can be replacing by a short cut "akc. spol."
or "a.s." (§ 155, Business Code). Trading company has fulfil also
general requirements, especially the one, that trading name can not be
commutable with company of other entrepreneur and can not act delusively. It is
not enough to have different addendum indicate legal title to differentiate (§
10, Business Code).
Basic capital
Basic capital has to be at least CZK 2 000 000 for Joint
stock company. Upper limit is not limited. Basic capital is shared to stocks. Stocks
are subscript - that means they are offerd to sale. Share owner is called “akcionář”
(share-holder). Share-holder does not liable for company.
Statutory body
Board of Directors is statutory body for Joint Stock Company. Member
of Board of Directors represents company outward. Names of members of Board of
Directors are registered at Companies Register; also all changes at Board of
Directors are registered. Members of Board of Directors are elected by Shareholders'
Meeting. There is strict and unconditional non compete for Members of Board of
Directors.
Advantages
- relatively
good external impress (big company)
- cleanly
capital company
Disadvatages
- high basic
capital CZK 2 000 000
- quite
complicated establishing and activity of company