JSC Formation: the Legal Framework
The formation of a joint-stock company is regulated by the Georgian law on entrepreneurs. This legal form is distinguished by a capital divided into shares; a shareholder is not liable for the company’s obligations, while the company answers to creditors with all its property and is not liable for the shareholders’ obligations. At formation, this architecture of liability applies equally to a single and to multiple founders: it is precisely this architecture that limits the founder’s personal risk to the amount of the placed capital and secures the creditors’ interest with the whole property of the company.
Under Article 19 of the law, a joint-stock company may even be founded by one person; if after registration all shares pass into the ownership of one partner, the company becomes a one-person enterprise, and information about this, together with the identifying data of the partner, is reflected in the manner established by the law and must be publicly accessible.