Practice question · Multiple choice
Why does the law demand 60,000€ minimum capital for an S.A. but only 3,000€ for an S.L.?
Hints
- Think about who deals with each form: acquaintances vs the open market.
- More anonymity → more protection needed up front.
Show the answer
A. The S.A. gathers funds from anonymous investors
Why
The S.A. trades with strangers at scale, dispersed shareholders, public creditors, markets. The heavier capital floor (and stricter rules generally) is the entry fee for anonymity.
Practise Joint-Stock Companies (S.A.)
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More questions on Joint-Stock Companies (S.A.)
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