A joint stock company can be, under certain circumstances, a very good and practical solution when it comes to organizing and running a business. This type of solution is, to a large extent, a division of responsibilities, duties and functions. Consequently, it relieves to a large extent one of the partners who would have to perform these tasks alone. So what is it characterized by and what is the specificity of a joint stock company?
A joint stock company belongs to the group of commercial companies. This means that disputes or unclear issues that are important to be clarified are governed by the provisions of commercial law. It is a very common type of capital company. Its essence is that action is based on the circulation of shares held by shareholders. The share capital comes from the contributions of the founders who, after making a contribution, become co-owners of the company.
The company’s share capital is divided between shares of equal value, which are made available to the shareholders. These shares may or may not be listed on the stock exchange. The listing of shares on the stock exchange also entails the possibility of buying and selling them.
A joint-stock company is established by entrepreneurs. When the process of its registration as a joint stock company begins, it is then an entity called “joint stock company in organization”. Only after registration in the National Court Register, is it already a proper joint-stock company, which has legal personality in accordance with Polish regulations.
The owners of the company are not responsible for all of its obligations. Each of them only brings responsibility up to the amount of the contribution made in the form of the shares held. Profits also depend on the contribution and are calculated in proportion to it. They are paid as dividends.
The law stipulates that the minimum share capital in the case of a joint-stock company is PLN 100,000, while the smallest admissible nominal value of shares is PLN 0.01, they cannot be valued cheaper. The actions themselves are divided into:
- Name
- Bearer
- Apports
- Cash
- Normal
- Privileged
It is worth remembering that shares are indivisible and the issue price cannot be lower than the nominal price.
Each shareholder has a specific range of rights and obligations that he or she agrees to when deciding to buy shares. It is important to know what this range looks like, to know what to expect and what to expect.
Among the rights that shareholders are entitled to is obtaining dividends. It is also the right to speak at the meetings of the general meeting of shareholders. A shareholder may freely dispose of his own shares and obtain information about the situation and activities of the company in which he has invested.
The obligation is to make a certain contribution to the shares. This is done by purchasing a selected number of shares. He is also obliged to return benefits that will be unduly collected by him, for example as a result of an error made in settlements.
A joint stock company, like any other company, can be dissolved. The reasons that may lead to its dissolution can be included in the company’s articles of association. If a situation written down as a reason for dissolution occurs, the company may cease to exist. The decision to dissolve may also be made by the general meeting in the form of a special resolution. Of course, the bankruptcy of the company is also a reason for its dissolution. It is worth remembering that the Commercial Companies Code also provides for other circumstances under which this type of company can be dissolved.
To sum up, a joint-stock company is a company operating under the Code of Commercial Companies, which regulates the principles of establishing such an enterprise, the principles of its operation and the rights and obligations of founders and shareholders. To some extent, it also regulates the bodies that must be appointed within the company (management board, general meeting of shareholders) and the reasons why this entity may cease to exist.