Joint-stock company

A joint-stock company is one of the ways to organize commercial activities. This is the organizational and legal form of the enterprise, which is able to attract unlimited amount of free funds through the issue and sale of securities - shares. The founders of AO can be both physical and legal persons. Those people who bought shares become co-owners of the enterprise, but the number of rights and opportunities that they will possess depends on the percentage of their shares in relation to all the shares of the enterprise. The joint-stock company operates on the basis of the law of the Russian Federation "On Joint-Stock Companies" and the charter, which must be established by all shareholders of the enterprise.

The joint-stock company is closed (ZAO) and open (OJSC) types. Both that, and another after the registration has the full right to sell the actions. However, this sale in a closed and open joint-stock company will be conducted in a different order, which is the main difference between these two joint-stock companies.

Closed Joint-Stock Company

This type of society includes companies whose securities, i.e. Shares may be distributed only among its founders or other, predetermined persons. ZAO does not have the right to hold a public subscription to the issued shares, and also sell them to all comers. In this joint-stock company, a certain limit is imposed on the number of shareholders themselves: according to the legislation, they can not be more than 50 people. Proceeding from this, the authorized capital of the CJSC is much less than in the JSC. If someone from the shareholders of ZAO decided to sell their shares, then first of all he should offer them to other shareholders of the enterprise. And only if they do not dare to exercise their full right to buy these shares, the latter can be sold to third parties (this provision is definitely the charter of the CJSC).

Public corporation

Such joint-stock company in the course of its activity can sell shares without any restrictions, its right is also the organization of subscription for shares. Thanks to such opportunities, the company can significantly increase its authorized capital, as well as attract new people to the development of its commercial activities. The sale of shares can be carried out in unlimited quantities and an unlimited number of individuals and legal entities, while all transactions must be conducted in accordance with the legal and legislative acts of the Russian Federation. Such a public joint stock company is different in that each of its shareholders can freely dispose of their shares, while the consent of other shareholders is not required.

Annually, the Company is obliged to publish the annual report, as well as information on profits, losses and its balance sheet. By law, such information is not secret, so anyone can freely read it.

Types of shares

There are two types of shares: privileged and simple. Owners of preferred shares are deprived of the right to vote in the Board of Shareholders, for which they are guaranteed to receive dividends, the so-called income from earnings on shares, regardless of the level at which the enterprise develops. If we talk about the owners of ordinary shares, they even receive dividends, but the latter are non-fixed. Their size depends entirely on how successfully the enterprise develops. At the same time, owners of common shares are not deprived of the right to vote in the Board of Shareholders.

Establishment of a joint-stock company is a justified step in the event that from organized activities one wants to receive large capital. Here, however, it will not be possible to do without the initial capital, and it will initially be rather big. It is worth noting that AO is not suitable for every business, but it makes a great contribution to the development of the country's economy.