Corporations act, brought to you by SLSR

20260722-0 \\ ??? words \\ Passed \\ Score: 0 \\ No summary

Corporations Act
Preface: This act would serve to go into much more legal details about what a corporation is, and what they can do.
§1: Definitions
Section Preface: To ensure no confusion, and set up the base for the rest of the act to build from.
a: A Corporation is defined as an individual, or other entity such as a company, that has been authorized by the state to act as a single entity (a legal entity recognized by private and public law as "born out of statute"; a legal person in a legal context) and recognized as such in law for certain purposes.
b: Corporations can either be traded or not. What distinguishes that is the ability to issue Stock.
c: A corporation that can issue stock is considered a traded company.
d: Stock, or share capital, is an equally divided amount of the company's capital.
e: Share capital = number of shares issued \* (par value + share premium)
f: The share capital of a corporation is the nominal value of issued shares (that is, the sum of their par values, sometimes indicated on share certificates). If the allocation price of shares is greater than the par value, as in a rights issue, the shares are said to be sold at a premium (variously called capital surplus or share premium, additional paid-in capital or paid-in capital in excess of par).
g: Any corporation may form their own share structure as long as it is disclosed with the Minister of the Economy, and mentioned in a public post.
§2: Formation
Section preface: Detailing what makes a corporation recognized by the state.
a: To Register a corporation, the Founder must fill out a form issued and monitored by the Minister of Economy.
b: On the form to Register a Corporation, the Founder must decide the name, whether it issues stock, publicly traded, whether it's for profit or not, and what the Corporation’s main service is.
c: Every registered corporation is to be recognized by the Minister of Economy, and documented with a post detailing the full list of every recognized corporation and their Owner/CEO, posted monthly along with the census results.
§3: Investing
Section preface: Detailing the nature and relationship of Investors to a Corporation.
a: If a corporation is publicly traded, any citizen may freely trade stock from that corporation.
b: If a corporation is privately traded, only specific investors the corporation offers their shares to may purchase stock, which they can sell back to the corporation, or to other investors.
c: Corporations with their own share structure different from the standard may have their stock or stock alternative sold to anyone they decide as per the layout of their share structure.
d: Corporations may issue as much stock as needed, with the limit and minimum being decided by the Minister of Economy.
e: If a corporation is not traded, the President of the corporation owns the entire corporation.
f: If a corporation is traded, the shareholders are the equal owners of the corporation.
g: Investing is defined as paying a corporation, in return for stock or a portion of the company’s profits/capital.
§4: Structure
a: Any corporation may establish their own internal structure, as long as it is disclosed with the Minister of Economy. No limits are to be placed on what a corporation may decide as their corporate structure.
b: Every traded corporation that has not otherwise defined their corporate structure is to have a “Board of Directors” responsible for the corporation.
c: Every corporation that has not otherwise defined their corporate structure is to have a Chief Executive Officer, or known as a CEO, that is responsible for running the company, and managing business. The CEO is to be an employee under the Board of Directors, who may fire the CEO at any time.
e: Corporations are to pay all their employees at a rate equal to or more than the minimum wage as decided by the Minister of Economy, which may be vetoed and changed by the President/Head of State.
§5: Legality
a: This act is to be put into place immediately upon passing.
Written by u/thatonefrein (Vice)
Sponsoring parties: VIES, Social Liberal Party