The joint- stock company is one of the most constituted today, it must be made up of a minimum of 5 partners and an unlimited maximum. It is a capital company, with limited liability, and where the capital stock is made up of shares.
The shares are differentiated from each other by their different nominal value or by the various privileges associated with it, for example in the benefit of a minimum dividend. The partners or shareholders will not respond with their personal assets, the debts of the company. But only the maximum amount of the capital contributed.
The capital of the public limited companies is divided into shares of equal value; This capital is made up of the authorized, subscribed and paid capital.
The authorized capital is that which the partners determine at the time the company is created, the shareholders are the ones who decide what the maximum limit is. The subscribed capital is a part of the authorized capital that the partners agree to cancel, either in cash, or through installments, within a period not exceeding one year. In the event that the partner finishes paying the subscribed capital, he will have the possibility to subscribe another part of the authorized capital.
Finally, the paid-in capital is the one that must be paid at the time the company is incorporated, that is, it is the capital the company has at the time of its foundation.
Another peculiarity of the shares is that they must be nominative, this means that the name of the owner of said share must be written on them. They cannot be divisible, that is to say that in the event that a share belongs to more than one person, it cannot be divided, therefore the different holders must choose a representative, to exercise on their behalf the rights provided to them. the holding of the stock.
Regarding the payment of dividends, each shareholder will have the right to a proportion of the profits depending on their participation in the company. These dividends may be paid in cash or through new shares, prior approval of the shareholders' meeting.
The name of joint-stock companies is generally created freely, but it must be different from any other company. What is important is that at the end it bears the expression "corporation" or its acronym "SA"
