Joint Stock Company of the Open Type

The creation and rules of operation of the joint-stock company are regulated by the Civil Code of the Russian Federation and the relevant laws on joint-stock companies and securities.

An open joint stock company is a commercial organization whose initial share capital is divided into shares that are evidence of the participants' compulsory rights with respect to the company.

Since January 1, 1995, the term open joint-stock company was replaced by an open joint-stock company. It is a free association of legal entities and citizens for conducting general business activities. The characteristic of the joint-stock company is as follows.

An open joint-stock company has the legal right to openly and privately subscribe to its own shares and sell them in a free manner, which is provided for by law and must be spelled out in the organization's charter.

Shareholders bear the risk of losses in proportion to the value of the shares that belong to them. They do not have to answer for the obligations of the company, they can alienate shares without the mandatory consent of other shareholders of the company. An open joint-stock company does not provide for the preferential rights of shareholders or a company to purchase shares that are alienated by their shareholders.

Shareholders of the OJSC can be citizens and legal entities, both residents of Russia and foreign. The number of shareholders is not limited.

The main constituent documents of a company of this type are the charter. The main issue of securities is carried out at the beginning of the company's activity in the form of a share issue for the initial sale.

At least half of the shares (50%) should be distributed among the founders of the company when it is created, and they must be paid by the owners during the first three months of the company's existence. The remaining shares can be paid within a year. Pay shares can be cash or other property, in the latter case with the mandatory involvement of the appraiser.

Additional issues are held to increase capital in the course of further business activities. This implements the principle of openness, which is reduced to the desire to attract as much free financial resources for the development of society.

An open joint-stock company is managed by a management body with a general meeting of shareholders whose competence includes the resolution of important business issues, the election of a supervisory body (the Board of Directors), and an executive body.

The executive body manages the current activities of the company. Usually he is the sole person (CEO). It is also possible to form a collegial executive body (directorate, board).

In Russia, many large and medium-sized enterprises are created as an open joint-stock company. This form allows you to effectively raise funds for the development of society in the form of investment through the issue and placement of additional shares and bonds issued. Shares and bonds can be issued for free circulation on a special securities market. All issued shares are subject to registration with the Federal Public Service for Financial Markets. Correctness of the company's work is checked by the audit of joint-stock companies.

Register a newly established public company in the tax authorities. To do this, you need to provide the following information about the company: passport data of the founders, the head and members of the Board of Directors, data from the Unified State Register of Legal Entities for all founders, the name of the company, information on the structure, amount, procedure for paying the authorized capital, main activities, Address of the location of the company. Address can be your own non-residential or rented premises or the place of residence of the head.