The Joint Stock Company (SpA or Sociedad por Acciones) was created in Chile by Law N° 20.190 as a simplified form of corporation and it was originally conceived for venture capital companies.
A joint stock company (SpA) can have one or more shareholders and a rather light manner of being managed since it does not require a board of directors.
Some of the advantages that a Joint Stock Company presents against a Single-Member Limited Liability Company are that it can be created as a unipersonal company and then add more members, it can have more than one corporate purpose and, also, its members can be legal persons.
This type of company allows the issuance of stock that only confers the right to share profits for a determined business. This allows a person to search for funding partners for a new business that he is seeking to develop and ensure the new partner that the business will be profitable, that it will not be contaminated by the businesses that already exist.
On the other hand, there can be an authorized capital, that is, capital increases made by the manager without the need for an agreement by the Shareholders´ Meeting, whether to fund the administration of the company or for other specific purposes.
Different series of shares can be created, some of them conferring only the right to receive profits and not to vote, a shareholder can be forced to sell his shares to the other shareholders or to the company itself if he wishes to withdraw from the company, etc.
A Joint Stock Company allows great flexibility in its management and in all of the rights and obligations related to the possession of its shares, which allows it to adapt to every one of the requirements of a business.