Joint Stock or Public Limited Liability Company
A joint-stock company is a commercial company with legal personality, in which the capital is divided according to the contributions of each partner.
The capital of Joint Stock Company is distributed through shares that confer the status of partner on the owner.
The fundamental characteristic of the public limited company is that the partner only contributes the capital and does not respond personally to the social debts, risking only the contribution of the subscribed shares without compromising their social assets.
This means that the corporate obligations are guaranteed by a certain capital and the partners are bound by the amount of their share.
The shares grant economic and political rights within the company to the shareholders, who differ from each other by the nominal value of the shares or the types of rights granted by each share.
Incorporation of a Limited Company
To form or constitute a public limited company, a public deed must be made with its so-called statutes, as contemplated in the commercial code of each country. A public limited company is made up of three bodies:
- The general meeting of shareholders or general assembly of partners;
- The administration of the company, and
- The supervisory board.
Likewise, a minimum number of partners or shareholders and a minimum share capital or capital subscription must be determined. The constitutive document of the corporation must establish the statutes in a clear, objective and detailed manner.
The general meeting of shareholders or general assembly of partners is the administrative and supervisory body of the public limited company. The meeting is held in an ordinary or extraordinary way.
Ordinary meetings are held once a year to deal with financial matters, distribution of dividends, appointment of new directors, among other points; Extraordinary meetings are held urgently when requested by the meeting or partners to discuss issues that justify the interests and future of the company.
Joint Stock Company Administration
The administration of the Joint Stock Company is the representative body of the company and they are in charge of the executive part of the company.