A limited joint-stock company

A limited joint-stock company is a company that may run its business under its name, where at least one owner is responsible unlimitedly and at least one owner is a shareholder. Shareholders do not answer for the obligation.

To establish this form of activity it is necessary to:
1. Compose articles of association in the form of a notary act,
2. Apply to a registered court,
3. Register a company in a registered court.

The company’s executives:
• The Board of Directors (established obligatory, at least 25 shareholders),
• The general meeting,
• The management (they represent the company, the shareholders may carry on a company’s affairs as its proxy).

Advantages:
• Possibility to extent amount of capital by issuing new shares,
• Possibility to possess new capital for a company’s development, without the risk of taking over a company by a competition,
• Possibility of input initial capital by association.

Disadvantages:
• High initial capital (PLN 50.000),
• High registration costs,
• Solidarity responsibility of an owner.