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What is Mercantile Society definition/concept

Sociedade Mercantil is an organization dedicated to making profit from commercial exchanges, unlike the perspective of a civil  society. However, a company maintains before the law a legal personality of its own and different from its members, as well as from its assets. From then on, two or more individuals share goods or services in common to enjoy the benefits achieved by this circumstance. They usually have three types of bodies with different purposes in their interior: the one that tends to the entity’s government, the one responsible for administration and the one that guides the surveillance actions. Mercantile Society

Depending on the Constitution , commercial companies can be classified as: corporations, where the obligations of the parties extend to a previously established capital, that is, to the corresponding value of each share as long as they are in their possession; as in a collective company, where the obligations are guaranteed in a limited and joint way by all the partners, that is, each partner must answer for the others; as mixed companies, in which only some partners must answer for a certain amount while others must answer considering all the company’s obligations; and finally, limited liability companies, where social obligations have a certain value based on a division into shares. Mercantile Society

A mercantile society can undergo changes during its existence. Thus, it can change its structure for another duly recognized by current legislation; in addition, it can merge with another company, joining its assets and unifying them under a single ownership, either through an absorption or a combination. Finally, a merchant company can divide its capital into two or more parts.

When a commercial company is dissolved, it liquidates, cancels its liabilities and collects the loans granted. All of its assets are transformed into cash and then shared among the partners. This must be done in compliance with the company’s articles of association. Mercantile Society

Commercial companies have evolved throughout history, going from simple commercial organizations with few members to modern companies with enormous capital and that have a high degree of efficiency. Perhaps the future will face more changes and evolutions causing significant impacts both in the social and economic fields .

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