Formation Companies Flashcards
- What are the three steps to form a company?
o Conclusion of constitutive act, registration in the Trade Register, and publicity.
- What is a constitutive act?
o The legal document establishing a company.
- What are the conditions for a valid company contract?
o Capacity, assent, lawful object, and consideration.
- What is the role of affectio societatis in company contracts?
o Reflects the intent to cooperate and share profits.
- What is the public subscription method?
o Raising capital by inviting public investments.
- What is the required form for company contracts involving land?
o Authentic form notarized by a public official.
- What are founders’ responsibilities?
o Full subscription and payment of capital, and accurate disclosures.
- What elements must the constitutive act include?
o Identification, capital, management, profit-sharing, and dissolution methods.
- What is subscribed capital?
o Total value associates agree to contribute.
- What is paid-up capital?
o Capital actually paid to the company.
- What is the significance of the company’s object of activity?
o Defines the business scope and legal boundaries.
- What happens during the Constitutive Meeting?
o Approval of subscriptions, appointment of managers, and planning.
- What are bearer shares?
o Shares that are transferred by simple delivery.
- What is the opposability function of publicity?
o Ensures third parties are aware of the company’s existence.
- What is required for incorporation in the Trade Register?
o Application within 15 days of constitutive act approval.
