PAO - what is this? PAO: decoding, definition, discovery and features

On September 1, 2014, a new state reform was implemented. The legislator divides all societies into public and non-public. The main factor influencing differentiation was the fact of involving an unlimited number of investors in the turnover of shares. If shares are placed by open subscription, they are traded on the stock exchange, then the organization is considered public, if not - non-public. Such changes in the legislation were necessary for the legal regulation of their activities. We will consider the essence of the concept, the features of the discovery, the specifics of the work of public joint-stock companies and answer the actual question for entrepreneurs: "PAO - what is this?".

What is PAO?

On September 1, 2014, amendments to the Civil Code concerning the activities of legal entities entered into force. This date marks the liquidation of ZAO, LLC and the start of work of new organizational forms of doing business - PAO (decoding: public joint stock companies), JSC, LLC (non-public joint-stock companies).

Before the changes in the legislation, large corporations and small organizations worked under a single legal regulation scheme. If a small organization had even two shareholders, the management was obliged to transfer the powers by creating a board of directors or organizing a meeting of shareholders at certain times, choosing an auditor who, in fact, controls his actions and protects interests. The amendments introduced improved the law and eliminated the need for organizations to comply with its requirements only formally because of a global discrepancy between legal and economic models.

Basic differences between PAO and JSC

More stringent requirements for PAO are due to the need for strict protection of the rights of a large number of investors. But the JSC has a greater choice of management mechanisms.

PAO: the opening. Algorithm

1. Economic justification of the business plan.

2. Organization of a public joint-stock company.

After making a decision on the establishment of a public joint stock company at a constituent assembly, or solely the shareholders conclude a written contract.

3. The conclusion of the founder agreement.

It will regulate the activities of the company, the amount of authorized capital, types of securities, the procedure for paying them, the rights and obligations of the parties.

4. State registration of PAO.

What is this process and what are its goals? The Company is registered by the Inspectorate of the Federal Tax Service of the Russian Federation, guided by Federal Law No. 31-FZ of 21.03.2002. A state duty is required for the service, the requisites need to be specified in the selected inspection department. Registration is necessary for conducting legal activities and state control. The founder must prepare such documents:

• statement;
• 2 original of the company's charter;
• Contract of establishment, protocol;
• A payment order, a receipt for payment of a fee;
• Documents for the legal address (notarized copy of the certificate of ownership, guarantee letter of the owner of the premises where the company will be registered).

How to register shares of a public company

A separate nuance is the registration of the issue of shares in PJSC of Russia. The founder must prepare additional papers for their legalization. They must be submitted within a month from the date of state registration of the company. Otherwise, you will have to pay a fine in the amount of 700 thousand rubles. Also this procedure is carried out in case of increase of the authorized capital, additional issue of shares, attraction of third parties, reorganization of the company.

OAO, PJSC do not mean different organizations, their goals have not changed, only its format has changed. CJSC, OJSC reformed into public, non-public companies, limited liability companies (LLCs) in order to improve their work model.

Opening of the PAO branch. What does this mean?

Article 51 of the head of the Federal Law No. 208-FZ with the edition of June 29, 2015 "On Joint Stock Companies" gives him the right to create his representative offices and branches, guided by the Civil Code of the Russian Federation, federal laws. The PAO branch is its full-fledged independent department and operates on the basis of a legal power of attorney.

Features of the activities of public joint stock companies

1. The number of shareholders is not limited.
2. Shares are traded on the market publicly and without restrictions.
3. The authorized capital is formed due to the issue of securities (shares), the minimum amount is 100,000 rubles.
4. There is no need to make money in the authorized capital before the company is registered.
5. Responsible for obligations with their property (but not in the case of obligations of shareholders of PAO). The opening of the company automatically gives shareholders the rights and responsibilities.
6. Important information about the company's activities is in the public domain (data of reports, financial statements, charter, decision on issue of shares).

Work organization

The management links are in the hands of the general meeting of shareholders, but it can not consider issues and approve decisions that are beyond its competence (the list of issues concerning which decisions can be made is fixed in the Federal Law "On Joint Stock Companies"). The current activity is supervised by the executive body - general director, board, management. He reports to the board of directors on the activities of the company. The latter should choose the company's auditor to conduct and control the financial and economic segment. The General Meeting of Shareholders is obligatory summoned once a year. OAO, PJSC, although reorganized, innovations in the legal segment, but in many respects retained the algorithm of registration and work.

The introduction of amendments on September 1, 2014 into the Civil Code allowed to create a legal model that meets the real needs of entrepreneurs. One of the most convenient and effective forms of organizing the work of the company is the PAO. The decoding reflects the essence of its activities. This is a public (open) joint-stock company. An objective answer to the question "PAO - what is this?" Will give an opportunity not only to organize a successful enterprise, but also to correctly determine its segment of business.