What is a joint stock company?

Kira Dobrovolskaya
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What is a joint stock company?

At the moment, joint stock companies have become very common, especially in Russia. What is a joint stock company? This is a legal form for enterprises of a commercial type, which concerns large and medium businesses. Often, small organizations are closed societies, but large ones, on the contrary, are open.

Joint-stock company and its types

In a commercial organization (joint stock company), capital is divided only into a certain number of shares. Responsibility for losses is borne by shareholders (they are also called depositors). Economic activity is directly related to them, only if the size of the shares belongs to the shareholder.

What are the types of joint stock companies? The first type is closed (there should be at least fifty people), and the second type is open (the number of depositors has no borders). If it happened that in a closed society more than fifty people, then it should be renamed to open, or the number of depositors should be reduced.

Features of the company

Now take a closer look at the work and features of the company. Documents on the organization - it is the constituent agreement and the charter. In the contract itself, a decision was made that establishes the creation of this company, but the charter deals with matters relating to financial and economic activities. The charter also includes the management of the company, it considers the competence and composition of bodies, the procedure and the number of shares issued.

The meeting of all shareholders is the most important body for managing the company. This meeting resolves any changes to the charter. The meeting may also decide how to form a board of directors and a control and auditing committee. It also concerns the liquidation or reorganization of the company. The meeting approves the annual financial report on losses and profits, on how to distribute this profit among existing shareholders. The bodies that are formed, carry out the tasks of managing the society, and the bodies that are formed are accountable to the entire general assembly.

To conduct business in such a form as a �joint stock company�, it is allowed to accumulate large amounts of money for a short period of time. For the implementation of various large projects is very convenient.

Open this society can be considered when it came state registration. Before registration, you need to create founding documents and be sure to pay a state fee.