An open joint stock company (OJSC) is one of the types of joint stock companies, whose members can alienate their shares without the consent of other shareholders. Such a joint-stock company has the right to free sale of shares and open subscription when issuing them.
Instructions
Step 1
In other words, an open joint-stock company is an association of citizens or legal entities for the purpose of joint business activities carried out by open and free purchase and sale of shares. This is how the charter capital of a joint-stock company is formed.
Step 2
The authorized capital in JSC is a combination of a certain number of shares. Each share plays the role of a title for its owner. It makes it possible to receive part of the income of the joint stock company (dividend), and also limits the entrepreneurial liability of each participant. The shareholders of the OJSC are not liable for its obligations, but they have some risk of losses associated with the size of their share in the authorized capital.
Step 3
An open joint stock company has some features that distinguish it from another form of joint stock entrepreneurship - a closed joint stock company (CJSC). OJSC seeks to place its shares among the widest possible circle of shareholders. For this purpose, it resorts to an open subscription to shares, unlike a CJSC, which places its shares only among a certain circle of persons. The number of participants in an OJSC can be unlimited, while in a CJSC there cannot be more than 50. The minimum authorized capital in an OJSC must be at least 1000 minimum wages, while in a CJSC it is 100 minimum wages.
Step 4
The issuing activity of an open joint stock company includes the main and additional issue of shares. The main issue of shares is carried out during the creation of the company and is an initial placement of securities. Additional emission occurs during the operation of the organization and is aimed at attracting additional funds to increase the authorized capital.
Step 5
An open joint stock company is the most stable form of capital pooling in modern conditions. The withdrawal of one or more members from the membership of the company does not lead to the closure of the JSC. A shareholder has the right to sell his shares without the consent of other participants, which is often not reflected in the work of the company.
