''Selskap med delt ansvar'' or DA (''company with divided liability''), is a type of
company in
Norway
Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and t ...
that does not have
limited liability
Limited liability is a legal status in which a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a corporation, company or partnership. If a company that provides limited liability to it ...
. The company will have two or more participants, who hold a given percentile ownership of the company. A DA is not based around stocks, like the ''
aksjeselskap
''Aksjeselskap'' is the Norwegian term for a stock-based company. It is usually abbreviated AS, historically often written as A/S. An AS is always a limited company, i.e. the owners cannot be held liable for any debt beyond the stock capital ...
'' (AS), and there is no mutual liability, like in the ''
ansvarlig selskap
An (; en, liable company) is a Norwegian legal form, mainly used in small and medium-sized enterprises, in which the company's individual owners are held personally liable for any outstanding debts acquired by the company. It is similar to a ...
'' (ANS). Instead each participant is directly liable for its relative ownership in the company.
There is no need for a minimum initial
equity
Equity may refer to:
Finance, accounting and ownership
* Equity (finance), ownership of assets that have liabilities attached to them
** Stock, equity based on original contributions of cash or other value to a business
** Home equity, the diff ...
in the company or for
auditing
An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing ...
if there are no more than 5 company participants or the revenues do not exceed 5 million
NOK. The company is required to have neither a
board of directors nor a
managing director
A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especiall ...
. If there is no managing director, any of the participants may sign for the company.
A disadvantage is that in case of
bankruptcy, the owner will be held liable for a share of the
debt
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase. The d ...
.
Types of companies of Norway
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