Aktiengesellschaft

Aktien-gesellschaft(German pronunciation:[ˈaktsi̯ənɡəˌzɛlʃaft];abbreviatedAG,pronounced[aːˈgeː]) is aGermanword for acorporationlimited byshareownership (i.e., one which is owned by itsshareholders) whose shares may be traded on astock market.The term is used in Germany, Austria, Switzerland (where it is equivalent to asociété anonymeor asocietà per azioni), andSouth Tyrolfor companies incorporated there. In the United Kingdom, the equivalent term ispublic limited company,and in the United States, while the terms"incorporated"or "corporation" are typically used, technically the more precise equivalent term is "joint-stock company"(though to note, for the British term, only a minority of public limited companies have their shares listed on stock exchanges).

Meaning of the word

Example of anAktie,with a nominal value of 1,000ℛ︁ℳ︁

The German wordAktiengesellschaftis a compound noun made up of two elements:Aktienmeaning an acting part orshare,andGesellschaft,meaning company or society. English translations includeshare company,orcompany limited by shares,orjoint-stock company.In German, the use of the termAktienfor shares is restricted toAktiengesellschaften.Shares in other types of German companies (e.g.,GmbHor acooperative) are calledAnteile(parts-of) rather thanAktien.

Legal basis

In Germany and Austria, the legal basis of the AG is the GermanAktiengesetz(abbr. AktG; "shares law" ) or the AustrianAktiengesetz(abbr. AktG). Since the German commercial law (§ 19Handelsgesetzbuch) requires all corporations to specify their legal form in their name, in order to inform the public of the limits on theirliability,all German (required by § 4Aktiengesetz) and Austrian stock corporations includeAktiengesellschaftorAGas part of their name, frequently as a suffix.

In Switzerland, the Company Limited by Shares (AktiengesellschaftinGerman,société anonymeinFrench,società anonimainItalian,societad anonimainRomansh) is defined in Title Twenty-Six of theCode of Obligations,Article 620. Article 950 specifies that the business name must indicate the legal form.

Structure

German AGs have a "two-tiered board" structure, consisting of a supervisory board (Aufsichtsrat) and a management board (Vorstand). The supervisory board is generally controlled by shareholders, although employees may have seats, depending on the size of the company. The management board directly runs the company, but its members may be removed by the supervisory board, which also determines the management board's compensation. Some German AGs have management boards which determine their own remuneration, but that situation is now relatively uncommon.

The general meeting is the supreme governing body of a Swiss company limited by shares. It elects the board of directors (VerwaltungsratinGerman) and the external auditors. The board of directors may appoint and dismiss persons entrusted with managing and representing the company.

Similar forms

The equivalent terms in other countries include the following, which mostly mean literally either "share company/society" or "anonymous company/society".

• Argentina, Bolivia, Costa Rica, Peru, Spain, and other Spanish-speaking countries –Sociedad Anónima(S.A.)
• Belgium (Dutch language), Netherlands –Naamloze Vennootschap(N.V.)
• Belgium (French language), France –Société Anonyme(S.A.)
• Brazil –Sociedade Anônima(S.A. or S/A or SA)
• Bulgaria –Акционерно дружество(Akcionerno druzhestvo), derived directly from the German AG
• Croatia –dioničko društvo(d.d.)
• Czech Republic –Akciová společnost– (a.s.)
• Denmark –Aktieselskab(A/S)
• Estonia –Aktsiaselts(AS)
• Finland –Osakeyhtiö(Oy)
• Greece –Ανώνυμος Εταιρεία(Anonymos Etaireia) (A.E., but often translated as S.A.)
• Hungary –Részvénytársaság(Rt)
• Indonesia – Perseroan Terbatas (PT)
• Japan –Kabushiki gaisha(K.K.), originally derived directly from the German AG (the term is based on the German) untillaw reformsunder theUnited States–ledOccupation of Japanmade the form similar toIllinois corporate law
• Italy –Società per azioni(SpA), derived directly from the German AG
• Malaysia –Berhad(Bhd)
• Norway –Aksjeselskap(AS)
• Romania –Societate pe acțiunior "Societate anonimă" (S.A.)
• Russia –Публичное акционерное общество(Publichnoe akcionernoe obschestvo) (ПАО)
• Serbia –deoničarsko društvo(d.d.) andakcionarsko društvo(a.d.)
• Slovakia –Akciová spoločnosť(a.s.)
• Slovenia –Delniška družba(d.d.)
• Sweden –Aktiebolag(AB)
• Turkey –Anonim Şirket(A.Ş.)
• Poland –Spółka akcyjna(SA)
• Portugal –Sociedade Anónima(S.A.)
• United Kingdom and Ireland (English) –Public limited company(Plc)
• United Kingdom (Welsh) –cymdeithas cyhoeddus cyfyngedig(ccc)

See also

• Gesellschaft mit beschränkter Haftung(GmbH)

Further reading

• Fohlin, Caroline (November 2005)."Chapter 4: The History of Corporate Ownership and Control in Germany"(PDF).In Morck, Randall K. (ed.).A History of Corporate Governance around the World: Family Business Groups to Professional Managers.University of Chicago Press. pp. 223–282.ISBN0-226-53680-7.
• Franks, Julian;Colin Mayer(2001). "Ownership and Control of German Corporations".The Review of Financial Studies.14(4). Oxford University Press: 943–977.doi:10.1093/rfs/14.4.943.JSTOR2696732.
• McGaughey, E. (2016),"The Codetermination Bargains: The History of German Corporate and Labour Law".Columbia Journal of European Law23(1) 135.
• German Stock Corporations Act 1965translation