Joint stock company what is meant by What forms does it have? Joint stock company the most important feature is the formation of its authorized capital through shares. Let's talk about it.
The authorized capital is a certain number of issued securities - a company divided into shares is called a joint-stock company. Each person who is a participant of a joint-stock company becomes a shareholder of the company and owns a certain number of shares. Shareholders can transfer the shares they own to someone else without affecting the operation and existence of the company. The company's shareholders are not responsible for the company's obligations, they only bear the risk of loss in proportion to the value of the securities they own.
There are open and closed joint stock companies. In the name of the joint-stock company, its appropriate type (ASC or JSC) should be indicated. According to the legislation, the minimum size of the charter fund for an open joint-stock company should be 10 million manats, and for a closed joint-stock company 5 million manats.
What are the characteristics of an open joint stock company??
If the participants of the company can transfer the shares they own to someone else without the approval of other shareholders, this form of company is called an open joint-stock company. Open joint-stock companies can sell their shares directly by themselves, through a bank or stock exchange, but the announcement of this sale must be announced in media resources no later than 6 months in advance. Also, open joint-stock companies are obliged to publicly publish their annual and financial reports.
What are the characteristics of closed joint stock companies?
The form of the company, whose shares are distributed only among the founders of the company, and any of the participants can transfer the shares with the consent of the majority of the company participants, is called a closed joint-stock company. Closed joint-stock companies cannot sell shares in any form and cannot advertise for sale, but can only distribute them among founders and predetermined persons.
Creation and activity of the shareholders society of the Republic of Azerbaijan "About the joint-stock company" regulated by law.
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