Amber :: General :: General Talk :: Advantages and disadvantages of a joint-stock comp - View Topic
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| waltergreene
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pm | | Advantages and disadvantages of a joint-stock comp (17th Mar 24 at 6:09pm UTC) | |
The advantage of this kind of company formation relates to liability thresholds. As a general principle, shareholders in a joint-stock company are liable only up to the value of their contribution to the company. So, if the company becomes insolvent, the creditors cannot seek compensation or require damages from the shareholders personally. Conversely, the company is not liable for its shareholders` debts. The strict line between the shareholders` and the company`s liabilities is based on the principle of the legal person.
Another advantage is the ability to raise the necessary funds for starting up the business. At the startup stage, it can be difficult for a company to obtain the initial capital. However, when a few business partners make an investment to achieve a single goal, the business startup plans are likely to be more realistic. Meanwhile, common investment is directly related to common profit-sharing. So if the company makes a profit, dividends should be paid proportionally to each shareholder.
The functions and competence of a company management board is governed by the applicable commercial law and the company’s articles of association. A joint-stock company usually involves a two-level supervisory board, and while this helps control decision making in the daily course of business and avoid mistakes, a complicated management structure may impair the speed of decision making at times when a quick reaction is necessary.
If you plan on setting up a business in the form of a joint-stock company, we strongly recommend that you consult us first. We can provide you with full, detailed information regarding tax planning options and the most efficient corporate structure for your business.
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| carson reed
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pm | | Re: Advantages and disadvantages of a joint-stoc.. (19th Mar 24 at 4:13am UTC) | | | Hot water tank france repair services North Vancouver provide essential solutions for residents experiencing issues with their hot water systems. Skilled technicians specialize in diagnosing and addressing a range of problems, including leaks, sediment buildup, and malfunctioning heating elements. With their expertise and prompt response, homeowners can avoid prolonged periods without hot water and restore their systems to efficient operation swiftly. These professionals understand the importance of timely repairs, ensuring that residents can enjoy the comfort and convenience of hot water in their homes without unnecessary inconvenience. By relying on hot water tank repair services in North Vancouver, residents can trust that their water heating needs will be met reliably and effectively. | |
| carson reed
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pm | | Re: Advantages and disadvantages of a joint-stoc.. (19th Mar 24 at 4:14am UTC) | | | Hot water tank france repair services North Vancouver provide essential solutions for residents experiencing issues with their hot water systems. Skilled technicians specialize in diagnosing and addressing a range of problems, including leaks, sediment buildup, and malfunctioning heating elements. With their expertise and prompt response, homeowners can avoid prolonged periods without hot water and restore their systems to efficient operation swiftly. These professionals understand the importance of timely repairs, ensuring that residents can enjoy the comfort and convenience of hot water in their homes without unnecessary inconvenience. By relying on hot water tank repair services in North Vancouver, residents can trust that their water heating needs will be met reliably and effectively. | |
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