A stock corporation (AG) is a form of corporation in which the share capital is divided into shares. This legal form is often chosen by larger companies as it enables them to raise capital by selling shares to investors (shareholders). Shareholders are owners of the AG and have rights that generally depend on the number of shares held, such as voting rights at the Annual General Meeting and entitlement to a share of the profit (dividend).

A stock corporation is a legal entity, i.e. it has its own legal personality and can acquire rights, incur liabilities, sue and be sued under its name. The AG is managed by the Management Board, which is monitored by a Supervisory Board. The Supervisory Board is elected by the shareholders at the Annual General Meeting. The Annual General Meeting is the supreme body of the AG at which shareholders can exercise their rights.

Shareholders’ liability for the company’s liabilities is limited to their contribution, i.e. the value of their shares. This means that in the event of insolvency of the AG, the shareholders may lose their investment but are not personally liable for the company’s debts.

In many countries, the formation of an AG is subject to certain legal requirements, such as a minimum capital, the preparation of articles of association and entry in the commercial register. In Germany, for example, the minimum share capital is 50,000 euros.

Public limited companies play an important role in the economy as they enable companies to gain access to financial resources through the capital market and offer investors the opportunity to participate in the economic development of companies.