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From Wikipedia, the free encyclopedia

Aktieselskab (pronounced [ˈɑkɕəselˌskɛˀp]; abbr.: , A/S or a/s, Unicode U+214d ; literally meaning: "stock company") is the Danish name for a stock-based corporation.[1] An aktieselskab may be either publicly traded or private.[2]

Liability

The shareholders of an aktieselskab are not liable for the debts of the company.[3] This can be used to protect the assets of the company against creditors by forming a group of companies. If an ⅍ is owned by a holding company (typically another ⅍), the profit from the production company can be transferred to the holding company. Since there is no liability for the owners of an ⅍, creditors from the production company will not be able to claim the profit in case of bankruptcy.[2] Professional creditors, such as banks, protect themselves from this by demanding that the holding company guarantees the debts of the production company.[citation needed]

Formation of an aktieselskab

The formation of an aktieselskab requires a number of steps, including the following:[1]

  • Notification concerning the formation to the Danish Business Authorities.
  • Registration of the company.
  • Resolution to form the company at the first general meeting.
  • Subscription for shares and payment of the share capital. The share capital must be greater than 400,000 DKK.
  • The signing of a memorandum of association which must contain a draft of the articles of association 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 Companies Agency.[2]

Share capital

The share capital registered at the Danish Commerce and Companies Agency must be at least 500,000 DKK.[2] The capital can come from contributions of cash or other assets.[3]

If half of the capital is lost the board of directors must convene a general meeting within six months.[3]

Board of directors

An aktieselskab must have a board of directors consisting of at least three members.[3] Members of the board can be elected for a period of up to four years depending on the articles of association.[3]

The board members are usually elected at the general meeting.[citation needed] 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.[3] 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.[citation needed]

See also

References

  1. ^ a b jpa (2015-06-03). "Aktieselskab". Startvækst (in Danish). Retrieved 2017-06-04.[permanent dead link]
  2. ^ a b c d "Erhvervsstyrelsens LovWeb - Login". Schultz Information. Retrieved 2017-06-04.
  3. ^ a b c d e f andgar@erst.dk (2014-11-17). "Selskaber". erhvervsstyrelsen.dk (in Danish). Retrieved 2017-06-04.

External links

This page was last edited on 16 April 2020, at 10:09
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