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Aktiengesellschaft, often referred to as “AG”, is an abbreviated form of the German name for a public limited liability company and is the widely used designation for companies on German stock exchanges. AG companies are subject to increased oversight and certain regulations that are defined by the German Stock Corporation Act (AktG). In order for a company to be classified as AG, it must satisfy certain requirements, both initially and continually.
Upon registration, the company must adhere to specific rules with regard to the capital requirements, share capital and proportion of issuance of no-par value stock and the specific regulations that are related to the shareholders’ meeting. Furthermore, the company must is also required to appoint a board of directors and a supervisory board that both comply with the respective regulations. The board of directors is mainly responsible for the management of the company whereas the supervisory board has a say in significant strategic decisions and the appointment and dismissal of the executive board.
On an ongoing basis, AG companies are subject to numerous reporting and disclosure requirements, including the publication of financial results and company reports. Furthermore, AG companies must also comply with the legal stipulations that are set out the German Securities Trading Act (WpHG) to ensure the proper conduct of their securities business. The law strictly prohibits insider trading and market manipulation, and requires the company to provide ongoing transparency and information to the market.
In summary, Aktiengesellschaft is a German term for a publicly traded corporation and is regulated by specific rules according to the German Stock Corporation Act (AktG) and the German Securities Trading Act (WpHG). AG companies are subject to strict capital requirements, the formation of management and supervisory boards and the maintenance of transparency, and thus, offer a measure of consumer protection and investor confidence, helping the company to maintain its status on the stock market.
Upon registration, the company must adhere to specific rules with regard to the capital requirements, share capital and proportion of issuance of no-par value stock and the specific regulations that are related to the shareholders’ meeting. Furthermore, the company must is also required to appoint a board of directors and a supervisory board that both comply with the respective regulations. The board of directors is mainly responsible for the management of the company whereas the supervisory board has a say in significant strategic decisions and the appointment and dismissal of the executive board.
On an ongoing basis, AG companies are subject to numerous reporting and disclosure requirements, including the publication of financial results and company reports. Furthermore, AG companies must also comply with the legal stipulations that are set out the German Securities Trading Act (WpHG) to ensure the proper conduct of their securities business. The law strictly prohibits insider trading and market manipulation, and requires the company to provide ongoing transparency and information to the market.
In summary, Aktiengesellschaft is a German term for a publicly traded corporation and is regulated by specific rules according to the German Stock Corporation Act (AktG) and the German Securities Trading Act (WpHG). AG companies are subject to strict capital requirements, the formation of management and supervisory boards and the maintenance of transparency, and thus, offer a measure of consumer protection and investor confidence, helping the company to maintain its status on the stock market.