Joint-stock company

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2018-03-28 08:39:07

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Joint stock company is one of the ways of organizing business. This organizational-legal form of the enterprise, having the ability to attract an unlimited amount of free funds through the issuance and sale of securities-stocks. The founders of a JSC may be both physical and legal persons. Those people who acquired the shares, become co-owners of the enterprise, but a number of rights and opportunities that they will have depends on the percentage of their shares relative to all shares of the company. Joint-stock company operates under the law of the Russian Federation “On joint-stock companies" and the Charter, which should be established by all shareholders of the company.

Joint stock company is a closed (ZAO) and open (OAO) types. Both after its registration has the right to sell their shares. It in closed and open joint-stock company will be in a different order, which is the main difference between these two AO.

Joint stock company

This type includes companies whose securities, i.e. shares may be distributed only among its founders or other predetermined persons. JSC has no right to conduct a public subscription for issued shares and sell them to all comers. In this joint-stock company a certain limit imposed on the number of shareholders: by law they can not be more than 50 people. On this basis, the authorized capital of JSC is much less than in JSC. If anyone of the shareholders decided to sell their shares, the first thing it needs to offer them to other shareholders of the company. And only if they decide to exercise their full right to the purchase of these shares can be sold to third parties (this situation is definitely the Charter of the JSC).

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Joint stock company

This joint-stock company the society in its activities, may sell the shares without any restrictions, and his law is the organization of subscription for shares. With features such JSC may significantly increase its share capital, and to attract to the development of its commercial activities of new faces. the Sale of shares may be effected in an unlimited number and an unlimited number of individuals and legal entities, all trading shall be conducted in accordance with legal and legislative acts of the Russian Federation. The public joint-stock company characterized by the fact that each shareholder can freely dispose of their shares, it does not require the consent of other shareholders.

Every year, the JSC is obliged to publish the annual report and also information about profit loss statement and your balance sheet. By law, such information is not confidential, so any freely to see it can be anyone.

Types of stock

Shares are of two types: privileged and simple. Holders of preferred shares, the voting rights of the shareholders, then they are guaranteed to  receive dividends, the so-called income from profit shares, regardless of the level of development of the enterprise. If we talk about the owners of ordinary shares, though they receive dividends, but the latter are not xed. Their size depends entirely on how to successfully developing enterprise. At the same time owners of the ordinary shares, the voting rights of the shareholders.

The Creation of joint companies is justified in the case of the organized activities you want to get big capital. Here, however, will not be able to do without initial capital, and it is initially going to be low. You should pay attention that the AO is not suitable for every business, but it makes a great contribution to the economic development of the country.


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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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