PUBLIC LIMITED COMPANY (a joint stock company) - "AD" - it is
a commercial company with share capital owned by its members whose liability is
limited to the amount of the capital they subscribe. Two or more persons,
including foreign individuals or legal persons can found a joint stock company.
The minimum required capital of a joint stock company is BGN 50,000, increasing
to BGN 100,000 if the capital is raised by a public offer. There are different
requirements for establishment of banks, insurance companies and investment
banks - the minimum capital required amounts to BGN
insurance companies - the minimum capital required
- BGN 2,000,000 for life insurance and personal accident
- BGN 3,000,000 for property insurance;
- BGN 4,000,000 for reinsurance;
Investment companies - the minimum amount and the
structure of the required capital as well as its relation to the assets and
liabilities as per the balance sheet are determined by the Securities and
Stock Exchange Commission according to the Securities, Stock Exchange and
the Investment Companies Act.
In the general case of a registration of a public limited
company, contributions to initial capital may be paid in cash or in kind, and at
least 25% of the capital must be paid up on foundation. A joint stock company
may issue either registered or bearer's shares. The general meeting of
shareholders is the highest body of the company, and must be held at least once
a year. The shareholder's meeting elects a board of directors (a one-tier
management structure) or a board of directors and a supervisory board (a two -
tier management structure).
A public limited company is required to prepare a
balance sheet and financial statements each year. Special statutory instruments
provide additional requirements to the foundation of banks, insurance companies
and investment funds in the form of joint stock companies.