The classical form of the capital companies is the Joint stock company, but it is different than the Limited liability one. The definition given by Article 158 in the Commercial Act for the Joint stock company is ‘a capital company of a corporate type’. The capital of course is divided in stocks that in all cases are equal, which is on the contrary to the company shares. The stocks are secured and can be transferred freely. The transfers don’t require any formal actions but is defined by the type of the stocks. The stocks cannot be separated but can be owned by couple of persons at once. To participate one stockholder is not required to be personally active. So he or she is not obligated to participate in the company’s management and to be loyal to the whole Joint stock.
Getting participated into the company can be done in material form, for example with capital contributions from monetary or other kind. The partners aren’t responsible for the Joint stock company liabilities. The relations into the company are regulated in the Articles of Incorporation.
The Joint stock company has one main characteristic – the stockholder’s participation into the company. The capital only consists of stocks which are securities that attest the owner’s participation into the Joint stock company. Every stock indicates a capital share and the number of stocks that someone have indicate the share of the stockholder.
Every stock in the Joint stock company has net value and emission value, but have in mind that the second value cannot be smaller amount than the first one. The two values can be at least equal.
The Commercial Act says that the stocks can be divided into categories as materialized shares, dematerialized shares, simple stocks, own shares, prerogative stocks and so on. The sum of every type of share form the whole capital of the Joint stock company. The minimum value of one share cannot be smaller than the amount of 1 BGN, but there are no restrictions for the maximum value. When the company is founded, the shareowners have to subscribe all of the shares between them and at least 25 percent of their value has to be paid up. The remaining has to be paid within two years after the company’s foundation or the stockholder can be expulsed.