Joint stock corporation AG (Aktiengesellschaft)
The joint-stock corporation (AG) is a company with its own legal personality. Only the corporate assets are liable to the creditors for its liabilities. It has an authorised capital split up into shares.
The law of stock corporations has been codified in the German Stock Corporations Act (AktG) of 06.09.1965 (with various amendments up to now).
An AG must have a managing board (Vorstand), empowered to decide all matters relating to the operation of the business and appointed by and answerable to the supervisory board (Aufsichtsrat). The shareholders of an AG exercise their power to control its policies at regularly scheduled general meetings (Hauptversammlungen).
Formation of the AG (simple formation) is done in the following steps:
- Approval of the Articles of Association (Shareholders’ Agreement)
- Provision of the authorised capital
- Appointment of the executive organs
- Payment of a part of the capital
- Production of the formation report
- Formation report
- Application to and entry into the Register of Commerce