View source for Finance:Aktiengesellschaft

{{Short description|Type of business entity in German-speaking countries}}
{{Italic title}}
{{Corporate law|other}}
'''{{lang|de|Aktiengesellschaft}}''' ({{IPA-de|ˈaktsi̯ənɡəˌzɛlʃaft}}; abbreviated '''AG''', {{IPA-de|aːˈgeː|pron}}) is a [[Social:German language|German]] word for a [[Company:Corporation|corporation]] limited by [[Finance:Share|share]] ownership (i.e. one which is owned by its [[Finance:Shareholder|shareholder]]s) whose shares may be traded on a [[Finance:Stock market|stock market]]. The term is used in Germany, Austria, Switzerland (where it is equivalent to a ''[[Finance:S.A. (corporation)|société anonyme]]'' or a ''[[Social:Società per azioni|società per azioni]]''), and South Tyrol{{efn|A German-speaking region of Italy.}} for companies incorporated there. It is also used in Luxembourg (as {{lang-lb|Aktiëgesellschaft|label=none}}, {{IPA-lb|ˈɑktsjəɡəˌzælʃɑft|pron}}), although the equivalent French language term ''[[Finance:S.A. (corporation)|société anonyme]]'' is more common. In the United Kingdom, the equivalent term is [[Company:Public limited company|public limited company]] and in the United States while the terms "incorporated" or "corporation" are typically used, technically the more precise equivalent term is "[[Social:Joint-stock company|joint-stock company]]"<ref>Google Translate reports "{{lang|de|Aktiengesellschaft}}{{-"}} translates as "joint-stock company".</ref> (though note for the British term only a minority of public limited companies have their shares listed on stock exchanges).<ref>This page: https://www.londonstockexchange.com/statistics/companies-and-issuers/companies-and-issuers.htm {{Webarchive|url=https://web.archive.org/web/20191115225659/https://www.londonstockexchange.com/statistics/companies-and-issuers/companies-and-issuers.htm |date=2019-11-15 }} (visited September 24, 2019) has a list of all public companies in Britain, and it numbers 2001 entries. This page: [https://www.companybug.com/how-many-limited-companies-are-there-in-the-uk/ "How many limited companies are there in the UK?"] {{Webarchive|url=https://web.archive.org/web/20191105092417/https://www.companybug.com/how-many-limited-companies-are-there-in-the-uk/ |date=2019-11-05 }} (Company Bug; visited September 24, 2019) says there are 1.9 million limited companies in Britain.</ref>

==Meaning of the word==
[[File:Aktie Dürener.jpg|thumb|Example of an ''Aktie'', with a nominal value of {{Reichsmark|1,000|link=yes}}]]

The German word ''Aktiengesellschaft'' is a compound noun made up of two elements: ''Aktien'' meaning an acting part or share, and ''Gesellschaft'', meaning company or society.  English translations include ''share company'', or ''company limited by shares'', or [[Social:Joint-stock company|joint-stock company]]. In German, the use of the term ''Aktien'' for shares is restricted to ''Aktiengesellschaften''. Shares in other types of German companies (e.g. GmbH or a [[Finance:Cooperative|cooperative]]) are called ''Anteile'' (parts-of) rather than ''Aktien''.<ref name="auto">{{Cite web|url=https://www.investopedia.com/terms/a/ag-aktiengesellschaft.asp|title=What Is AG (Aktiengesellschaft)?|website=Investopedia|access-date=2022-04-05|archive-date=2022-04-05|archive-url=https://web.archive.org/web/20220405200543/https://www.investopedia.com/terms/a/ag-aktiengesellschaft.asp|url-status=live}}</ref><ref>{{Cite web|url=https://www.collinsdictionary.com/us/dictionary/german-english/aktiengesellschaft|title=English Translation of "Aktiengesellschaft" &#124; Collins German-English Dictionary|access-date=2022-04-05|archive-date=2023-07-02|archive-url=https://web.archive.org/web/20230702140451/https://www.collinsdictionary.com/us/dictionary/german-english/aktiengesellschaft|url-status=live}}</ref>

==Legal basis==
In Germany and Austria, the legal basis of the AG is the German ''Aktiengesetz'' (abbr. AktG; "shares law") or the Austrian ''Aktiengesetz'' (abbr. AktG). Since the German commercial law (§ 19 ''Handelsgesetzbuch'') requires all corporations to specify their legal form in their name, in order to inform the public of the limits on their [[Social:Legal liability|liability]], all German (required by § 4 ''Aktiengesetz'') and Austrian stock corporations include ''Aktiengesellschaft'' or ''AG'' as part of their name, frequently as a suffix.

In Switzerland, the Company Limited by Shares (''Aktiengesellschaft'' in [[Social:German language|German]], ''société anonyme'' in [[Social:French language|French]], ''società anonima'' in [[Social:Italian language|Italian]], ''societad anonima'' in Romansh) is defined in Title Twenty-Six of the Code of Obligations, Article 620. Article 950 specifies that the business name must indicate the legal form.<ref name="auto"/>

==Structure==
German AGs have a "two-tiered board" structure, consisting of a supervisory board (''Aufsichtsrat'') and a management board (''Vorstand''). The supervisory board is generally controlled by shareholders, although employees may have seats, depending on the size of the company. The management board directly runs the company, but its members may be removed by the supervisory board, which also determines the management board's compensation. Some German AGs have management boards which determine their own remuneration, but that situation is now relatively uncommon.

The general meeting is the supreme governing body of a Swiss company limited by shares. It elects the board of directors (''Verwaltungsrat'' in [[Social:German language|German]]) and the external auditors. The board of directors may appoint and dismiss persons entrusted with managing and representing the company.<ref>{{Cite web|url=https://www.firma.de/en/company-formation/what-is-a-aktiengesellschaft-stock-company/|title=What is an Aktiengesellschaft (stock company)?|date=September 10, 2018|access-date=April 5, 2022|archive-date=May 19, 2022|archive-url=https://web.archive.org/web/20220519104816/https://www.firma.de/en/company-formation/what-is-a-aktiengesellschaft-stock-company/|url-status=live}}</ref>

==Similar forms==
The equivalent terms in other countries include the following, which mostly mean literally either "share company/society" or "anonymous company/society".

* Argentina, Bolivia, Costa Rica, Peru, Spain, and other Spanish speaking countries – ''Sociedad Anónima'' (S.A.)
* Belgium (Dutch language), Netherlands – ''Naamloze Vennootschap'' (N.V.)
* Belgium (French language), France – ''Société Anonyme'' (S.A.)
* Brazil – ''Sociedade Anônima'' (S.A. or S/A or SA)
* Bulgaria – ''Акционерно дружество'' (Akcionerno druzhestvo), derived directly from the German AG
* Croatia – ''dioničko društvo'' (d.d.)
* Czech Republic – ''Akciová společnost – (a.s.)
* Denmark – ''[[Finance:Aktieselskab|Aktieselskab]]'' (A/S)
* Estonia – ''Aktsiaselts'' (AS)
* Finland – ''[[Finance:Osakeyhtiö|Osakeyhtiö]]'' (Oy)
* Greece – ''Ανώνυμος Εταιρεία'' (Anonymos Etaireia) (A.E., but often translated as S.A.)
* Hungary – ''Részvénytársaság'' (Rt)
* Indonesia – Perseroan Terbatas (PT)
* Japan – ''[[Finance:Kabushiki gaisha|Kabushiki gaisha]]'' (K.K.), originally derived directly from the German AG (the term is based on the German) until [[Philosophy:Law reform|law reform]]s under the {{wipe|United States}}–led Occupation of Japan made the form similar to Illinois corporate law
* Italy – ''[[Social:Società per azioni|Società per azioni]]'' (SpA), derived directly from the German AG
* Malaysia – ''Berhad'' (Bhd)
* Norway – ''Aksjeselskap'' (AS)
* Romania – ''Societate pe acțiuni'' or "Societate anonimă" (S.A.)
* Russia – ''[[Finance:Open joint-stock company|Публичное акционерное общество]]'' (Publichnoe akcionernoe obschestvo) (ПАО)
* Serbia – ''deoničarsko društvo'' (d.d.) and ''akcionarsko društvo'' (a.d.)
* Slovakia – Akciová spoločnosť (a.s.)
* Sweden – ''[[Finance:Aktiebolag|Aktiebolag]]'' (AB)
* Turkey – ''Anonim Şirket'' (A.Ş.)
* Poland – ''Spółka akcyjna'' (SA)
* Portugal – ''Sociedade Anónima'' (S.A.)
* United Kingdom and Ireland (English) – ''[[Company:Public limited company|Public limited company]]'' (Plc)
* United Kingdom (Welsh) – ''cymdeithas cyhoeddus cyfyngedig'' (ccc)

==See also==
*[[Finance:Gesellschaft mit beschränkter Haftung|Gesellschaft mit beschränkter Haftung]] (GmbH)

== Explanatory notes ==
{{notelist}}

== References ==
{{Reflist}}

==Further reading==
* {{cite book |last=Fohlin|first=Caroline |editor-first=Randall K. |editor-last=Morck |title=A History of Corporate Governance around the World: Family Business Groups to Professional Managers |publisher=University of Chicago Press |date=November 2005 |pages=223–282 |chapter=Chapter 4: The History of Corporate Ownership and Control in Germany |isbn=0-226-53680-7 |chapter-url=https://www.nber.org/chapters/c10271.pdf}}
* {{cite journal |last=Franks|first=Julian|author2=Colin Mayer|title=Ownership and Control of German Corporations|journal=The Review of Financial Studies|year=2001|volume=14|issue=4|pages=943–977|jstor=2696732|publisher=Oxford University Press|doi=10.1093/rfs/14.4.943|}}
* McGaughey, E. (2016), [https://ssrn.com/abstract=2579932 "The Codetermination Bargains: The History of German Corporate and Labour Law"]. ''Columbia Journal of European Law'' 23(1) 135. 
* [http://www.nortonrosefulbright.com/files/german-stock-corporation-act-147035.pdf German Stock Corporations Act 1965] translation

[[Category:Types of business entity]]

ja:株式会社 (ドイツ)

{{Sourceattribution|Aktiengesellschaft}}