Stock Corporation Act – What’s all about?
The German Stock Corporation Act (AktG) regulates the establishment, constitution, accounting, general meetings and liquidation of stock corporations and partnerships limited by shares.
The Stock Corporation Act regulates the rights and obligations of corporations based on shares. In addition to the Stock Corporation Act, the provisions of the Commercial Code and the Civil Code are applicable.
In order to let you understand more about this German Act, here the first 3 Sections of the AktG:
Nature of the stock corporation
(1)The stock corporation is a company having a legal personality of its own. Solely the company’s assets shall be liable to the creditors of the company for its obligations.
(2) The share capital of the stock corporation is divided up into shares of stock
Number of founders
One or several of the individuals acquiring the shares of stock in return for payment of a contribution must be involved in establishing the articles of association (the by-laws).
Merchant status conferred by law. Stock exchange listing
(1) The stock corporation is deemed a trading company even if the purpose of the enterprise does not consist of carrying on a trade.
(2) Companies listed on the stock exchange in the sense of the present Act are companies whose shares of stock are admitted to trading on a market that is regulated and monitored by officially recognised bodies, that takes place on a regular basis, and that is indirectly or directly accessible to the general public.