It is entirely up to the joint-stock company what kind of shares to issue, it determines it in its articles of association. A shareholder can simultaneously own shares of different types. These are fundamental changes brought about by the new regulation for joint-stock companies from January 2014.
In addition to common – ordinary shares, the company can also issue shares with special rights such as the weight of votes or a different share in the profit. However, the owners of the company cannot do what they want, certain definitions give the principles of equal treatment and good manners.
The introduction of the so-called piece shares without nominal value.
If the company issued, for example, 10 shares, one share represents a 10% stake. If they then issue another 10, one share will represent a share of 5%.
In the case of individual shares, there is no need to undergo a costly marking of the new nominal value of the shares.
The Law on Corporations also regulates the bodies of a joint-stock company. The founders can choose whether to establish a board of directors and a supervisory board or an administrative board supplemented by a statutory director in addition to the general assembly (dualistic or monistic structure of governing bodies).
Newly, these bodies can be made up of only one person (the company can be headed by one member of the board of directors who also holds the position of statutory director), which is again not only a financial relief for starting entrepreneurs. As recently as last year, a joint-stock company had to be headed by at least six elected bodies, three each in the supervisory and three in the board of directors).
Starting from the new year, a joint-stock company is obliged to have its own website with mandatory information such as the name and seat of the company, ID number and entry in the commercial register. In addition, there must be a number of documents, such as an invitation to a general meeting 30 days in advance. Companies that do not fulfill this obligation face a fine of up to one hundred thousand crowns.
This obligation has not yet been introduced for limited liability companies.
