Aktieselskab

Aktieselskab, abbreviated A/S, is the Danish corporate form for a stock corporation with limited liability for its shareholders. It is commonly used by larger businesses and by companies seeking external financing or potential stock-market listing. Ownership is divided into shares, which are usually freely transferable and evidenced by share registers or certificates.

Formation and capital: An A/S is formed by registration under the Danish Companies Act with the Danish Business Authority. The minimum share capital is 400,000 Danish kroner, which must be paid up in cash or in kind. The company can have one or more directors and may appoint a separate executive management. The articles of association govern the company's purpose and governance.

Liability and governance: Shareholders are liable only to the extent of their paid-in capital. Governance is through general meetings of shareholders and a board of directors; management handles daily operations. Larger A/S may employ a two-tier structure with a supervisory board.

Disclosure and regulation: An A/S must prepare annual accounts under Danish accounting rules and file reports with the authorities. If listed, it is subject to additional disclosure and market-regulation requirements.

Relation to other forms: The A/S is the Danish equivalent of a joint-stock company or stock corporation. It contrasts with ApS, a private limited company with a lower minimum capital and typically more closely held ownership. In other Nordic countries similar forms exist under different names, such as Aktiebolag in Sweden and Aksjeselskap in Norway.