Some specific aspects concerning the company by shares

• Main Author: Ana-Maria Lupulescu
• Format: Article
• Language: English
• Published: Bucharest University of Economic Studies 2019-03-01
• Series: Juridical Tribune
• Subjects: company by shares; specific aspects; companies of capitals; limited liability; General Meeting of Shareholders
• Online Access: http://www.tribunajuridica.eu/arhiva/An9v1/7.%20Lupulescu%20EN.pdf

The company by shares is the prototype of company of capitals, since this legal form of company is set up and functions only based on the contributions made by the associates, who are liable for the social obligations within the limits of these contributions, so that the person of the associates or the trust between them is irrelevant. In exchange for the contributions they make within the company, the shareholders receive negotiable instruments, which can be transmitted freely. From this perspective, the company by shares was conceived as a form of organizing large-scale activities that require and concentrate important funds, made available to the company by a large number of shareholders. These significant aspects, which have influenced the legal regulation applicable to it, characterized by excessive formalism, complicated and strict rules, with countless conditions imposed by the law in order to protect both third parties and minority shareholders, lead to the conclusion that this legal form of company is not appropriate for small activities with a reduced number of associates, because the advantages of choosing this form of company are not justified, as compared to the disadvantages it implies. Within this context, we consider that an analysis of this form of company, even though is not intended as exhaustive, but highlights particular significant aspects that underline its juridical specificity, may appear important and particularly useful, both for analysts in law and practitioners.