public limited company

The company in public limited company, is one of the most constituted today, it must be integrated by at least 5 partners and a maximum unlimited. 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 contributed capital.

The capital of corporations is divided into shares of equal value; This capital is made up of the authorized, subscribed and paid-in capital.

The authorized capital is the one that the partners determine at the time of creating the company, 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 pay, 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 of subscribing another part of the authorized capital.

Finally, the paid-in capital is the one that must be paid at the time of setting up the company, that is, it is the capital that 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 granted to them. the holding of the stock.

Regarding the payment of dividends, each shareholder will be entitled 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 public limited 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 “stock company” or its acronym “SA”