Acta Univ. Agric. Silvic. Mendelianae Brun. 2018, 66, 1601-1611

https://doi.org/10.11118/actaun201866061601
Published online 2018-12-19

Simple Company on Shares as Startup Support Tool

Tomáš Peráček1, Boris Mucha2, Patricia Brestovanská2, Jana Kajanová2

1Department of Information Systems, Faculty of Management, Comenius University in Bratislava, Šafárikovo námestie 6, 814 99 Bratislava, Slovak Republic
2Department of Economics and Finance, Faculty of Management, Comenius University in Bratislava, Šafárikovo námestie 6, 814 99 Bratislava, Slovak Republic

On January 1st 2017, the amendment to the Commercial Code implementing the Capital Market Concept. This is a measure of the implementation which is the part of the Startup Support Concept and the Development of the Startup Ecosystem in the Slovak Republic. A new form of capital trading company has been created to offer a comprehensive solution for capital investments in companies. An example of such an investment is start‑up investment as business initiatives with high innovation and growth potential that can not provide funding through banks. When investing capital, it is necessary to flexibly set the investor’s entry, coexistence and output beyond what is currently possible in the form of trading companies in the conditions of the Slovak Republic. Until now, it has been a limited liability company, which has been mainly used for investing capital of start‑ups. Later was used the joint stock company as the capital‑intensive type of business. A public limited company and a limited partnership belonging to a group of private partnerships were not and are not used as startups, because of unlimited liability of the partners for the company’s obligations. The main obstacle for a joint‑stock company, as support for startups until their advanced stages of life cycle, is relatively high statutory minimum capital requirement of EUR 25,000. Another issue may be legal regulation aimed at medium and large businesses allowing them to trade their shares on the stock Exchange market, with the associated increased demands to ensure the functioning of the company. However, the Simple company, representing the hybrid form of a capital company, also has its serious shortcomings and is not a boon to support startups. Since it is a “young” type of business company that has not yet been the subject of research, it is the intention of the contributors to analyse a Simple company on shares and, by means of a number of scientific research methods, to provide a critical view of its shortcomings. Despite the fact that the reason for the establishment of this business company was mostly economic, research is mainly directed at the area of commercial law.

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