What is the German Stock Corporation Act?
What is the German Stock Corporation Act?
The German Stock Corporation Act (Aktiengesetz), enacted on 6 September 1965, regulates in particular the founding of a company, the legal relationships between the company and its partners or shareholders, capital, changes to the capital stock, and the dissolution of the company.
What is a AG company?
Aktiengesellschaft (German pronunciation: [ˈaktsi̯ənɡəˌzɛlʃaft]; abbreviated AG, pronounced [aːˈgeː]) is a German word for a corporation limited by share ownership (i.e. one which is owned by its shareholders) whose shares may be traded on a stock market.
Is GmbH a corporation?
GmbH is an abbreviation of the German phrase “Gesellschaft mit beschränkter Haftung,” which means “company with limited liability.” It’s a suffix used after a private limited company’s name in Germany (versus AG, which is used to indicate a public limited company).
Who can issue bearer shares in Germany?
In keeping with the German Stock Corporation Act, stock corporations issue bearer shares unless their charter provides for the issue of another class of share.
Does a GmbH have shareholders?
The GmbH is a legal entity separate from its shareholders. Therefore, the shareholders are in principle not liable for debts of the GmbH.
Is GmbH legal form?
A GmbH is a company legal form and is the peer of the AG (Aktiengesellschaft or Stock Corporation in English) and the KGaA (Kommanditgesellschaft auf Aktien or Partnership Limited by Shares in English). The owner of a GmbH is called a Gesellschafter (shareholder or partner).
Are bearer shares prohibited in Germany?
The issuance of bearer shares is allowed in Germany and there are no comprehensive mechanisms to prevent their misuse. Germany has presented an amendment to the Stock Corporation Act which provides for the immobilization of bearer shares.
Are bearer shares legal?
Federally incorporated entities are permitted to issue bearer shares. There are no requirements that bearer shares need to be converted into registered shares or held with a regulated financial institution or professional intermediary.