Everything about Aktieselskab totally explained
An
Aktieselskab (abbreviated
A/S) is the
Danish name for a
stock-based
corporation. An Aktieselskab can be both publicly traded and private.
Liability
The shareholders of an Aktieselskab are not liable for the debt of the company. This can be used to protect the assets of the company against creditors by making a group of companies. If an A/S is owned by a
holding company (typically another A/S) the profit from the production company can be transferred to the holding company. Since there's no liability for the owners of an A/S, creditors from the production company won't be able to claim the profit in case of
bankruptcy. Professional creditors like banks protect themselves from this by demanding that the holding company guarantees for the debts of the production company.
Formation of an A/S
The formation of an Aktieselskab follows five steps:
- The signing of a memorandum of association which must contain a draft of the articles of association of the company.
- Subscription for shares and payment of the share capital. The share capital must be greater than 500.000 DKK.
- Resolution to form the company at the first general meeting.
- Notification concerning the formation to the Danish Commerce and Company Agency.
- Registration of the company.
An Aktieselskab can only acquire rights or incur obligations as a company when it has been registered at the Danish Commerce and Company Agency.
The share capital
The share capital registered at the Danish Commerce and Companies Agency must be at least 500.000
DKK. The capital can come from contributions of cash or other assets.
If half of the capital is lost the board of directors must convene a general meeting within six months.
The board of directors
An Aktieselskab must have a
board of directors consisting of at least three members. Members of the board can be elected for a period of up to four years depending on the articles of association.
The board members are usually elected at the general meeting. The articles of association may confer upon public authorities or any third party the right to appoint one or more members of the board of directors. In companies with an average workforce of over 35 employees during the last three years, the employees are entitled to elect among themselves a number of members of the board of directors equal to half the members of the board of directors elected by the shareholders or appointed by third parties.
Further Information
Get more info on 'Aktieselskab'.
|
External Link Exchanges
Do you know how hard it is to get a link from a large encyclopaedia? Well we're different and will prove it. To get a link from us just add the following HTML to your site on a relevant page:
<a href="http://aktieselskab.totallyexplained.com">Aktieselskab Totally Explained</a>
Then simply click through this link from your web page. Our crawlers will verify your link, extract the title of your web page and instantly add a link back to it. If you like you can remove the words Totally Explained and embed the link in article text.
As long as your link remains in place, we'll keep our link to you right here. Please play fair - our crawlers are watching. Your site must be closely related to this one's topic. Any kind of spamming, dubious practises or removing the link will result in your link from us being dropped and, potentially, your whole site being banned. |
