Definition§
Società per Azioni (SPA) is the Italian equivalent of a corporation or public limited company. It is a type of joint-stock company where shareholder liability is limited to the amount of their investment in the corporation. The SPA structure is ideal for medium to large enterprises aiming to raise capital through the public market.
Examples§
- Enel S.p.A.: A multinational manufacturer and distributor of electricity and gas.
- Fiat Chrysler Automobiles N.V. (now Stellantis N.V.): An automotive manufacturer with its roots in Italy.
Frequently Asked Questions§
What is the minimum capital required to start an SPA in Italy?§
The minimum capital required to establish an SPA is €50,000. This capital can be raised through the issuance of shares.
How is an SPA different from an SRL (Società a Responsabilità Limitata)?§
An SRL, or limited liability company, is another common business form in Italy. It generally suits smaller businesses, as it has a lower minimum capital requirement compared to an SPA and offers more flexibility in governance.
Who manages an SPA?§
An SPA is typically managed by a Board of Directors, which is elected by the shareholders. The board may appoint a CEO to handle day-to-day operations.
Can shareholders be held personally liable for the debts of an SPA?§
No, shareholders of an SPA enjoy limited liability, meaning they are not personally liable for the company’s debts beyond the amount of their investment.
How are profits distributed in an SPA?§
Profits in an SPA are distributed to shareholders in the form of dividends, proportionate to their shareholding.
Related Terms§
- Joint-Stock Company: A business entity in which shares can be bought and sold by shareholders.
- Public Limited Company (PLC): A type of corporation in various jurisdictions similar to an SPA.
- Corporate Governance: The system of rules, practices, and processes by which a company is directed and controlled.
Online References§
Suggested Books for Further Studies§
- “Italian Company Law” by Mario Notari and Antonio Rossi
- “Corporate Governance in Italy” by Guido Ferrarini and Gianvito La Peruta
- “Comparative Company Law: A Case-Based Approach” by Mathias Siems and David Cabrelli
Fundamentals of SPA (Società per Azioni): Business Law Basics Quiz§
Thank you for exploring the intricacies of Società per Azioni (SPA) and testing your knowledge with our quiz. Keep up the excellent work in mastering business law!
