Why Is A Simple Company On Shares An Unnecessary Type Of Business

Abstract:

A new form of capital trading company has been in year 2015 created to offer a comprehensive solution for capital investments in companies. Until now, it has been a limited liability company, which has been mainly used for investing capital of start-ups. Later was used the joint stock company as the capital-intensive type of business. A public limited company and a limited partnership belonging to a group of private partnerships were not and are not used as startups, because of unlimited liability of the partners for the company's obligations. The main obstacle for a joint-stock company, as support for startups until their advanced stages of life cycle, is relatively high statutory minimum capital requirement of EUR 25,000. However, the Simple Company on Shares, representing the hybrid form of a capital company, also has its serious shortcomings and is not a boon to support startups. Since it is a “young” type of Business Company that has not yet been the subject of research, it is the intention of the contributors to analyse a Simple company on shares and, by means of a number of scientific research methods, to provide a critical view of its shortcomings. Despite the fact that the reason for the establishment of this business company was mostly economic, research is mainly directed at the area of commercial law.

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