Corporate law in general

The most unique characteristic of a limited or a private limited company is that the company - and not its owners - can incur liability as a separate legal entity.

Thus, a company can incur limited liability, viz. to the extent of the funds generated by the company, i.e. share capital plus reserves (equity).

This is why activities - irrespective of their nature - in the form of a limited or a private limited company attract the attention of the general public and why the situation regarding such companies is strictly regulated by the two main acts in this area, viz. the Danish Companies Act and the Danish Private Companies Act. To a large extent, the contents of these acts are based on pan-European legislation and thus reflect Denmark's implementation of the EU corporate law directives. They regulate the relations between companies and the outside world as well as - on a general level - the relations between the individual shareholders.
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