Joint-stock company (JSC) - a kind of business companies. AO is a commercial organization, in which the authorized capital is divided into a certain number of shares, giving the obligation rights of the partners of the company - shareholders. The Law "On Joint Stock Companies" regulates the functioning of joint-stock companies.
Shareholders are not responsible for the obligations of the company, but may incur losses within the existing shares from the activities of the company.
Classification
Joint-stock companies are open and closed.
Open Joint Stock Company (OJSC) is a form of public organization where shareholders can use the option of alienation of their own shares. By law, such a company is considered public, which means it is obliged to provide more information about its activities than a closed joint-stock company.
Closed Joint-Stock Company (CJSC) is a form of public organization whose shares are owned only by founders and persons of a predetermined circle. A closed joint-stock company is usually not required to publish its accounts to the general public, unlike an open joint stock company.
AO functioning
The joint-stock form is the most common among the legal organizations of medium and large businesses. For large companies, an open form of joint stock company is the most suitable, and closed joint-stock companies are acceptable for medium-sized businesses.
Now there is a tendency to complicate legislation for joint-stock companies. Recently, it has become not so easy to redeem shares to majority shareholders.
OJSC can be created as a result of privatization of state-owned companies. Corporatization is the transfer of a state company to a joint-stock company.
To learn about this topic and not only you can here - https://en.wikipedia.org/wiki/Joint-stock_company
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