One of the most popular forms of ownership of economic enterprises conducting various types of activities are limited liability companies (LLC) and a joint stock company (OJSC - open joint stock company).
Business entities
A limited liability company is a business type company that is created by one or more persons. Its authorized capital is divided by shares among its founders. All members of a limited liability company accept responsibility for the risks associated with the economic activities of this legal entity, in accordance with their shares that are assigned to them in the authorized capital.
A joint stock company is a commercial entity whose finances are presented in the exact number of shares, which, in turn, have a par value. Shares can be owned by the persons who bought them. One of the main differences of this type of business management is that an unlimited number of persons can own shares. Shares can be sold and redeemed, as well as change their own value depending on the exchange rate, if we are talking about large players in the market.
Capital
The share capital of a joint stock company is formed from the real promotional price at which the shareholders purchased the shares. You can pay for promotional papers that are distributed among the founders with the help of money, property, provision of services, etc.
The share capital of a Limited Liability Company is the aggregate of the value of the shares owned by the founders of a given business form.
Shares in the authorized capital
The founders of LLC and OJSC can be ordinary citizens and legal entities. Representatives of government and local government have no right to act as co-founders of these two forms of economic activity.
By its structure, an LLC is more closed than an OJSC. In an LLC, no more than 50 persons can be founders. If this number is higher, then in the next 12 months after the registration of the "extra" owner, the legal entity must become an OJSC. In case of non-transformation, it is eliminated in the manner prescribed by law.
In order for the registration of OJSC and LLC to be carried out in accordance with all the norms of legislation, the tax authorities provide a whole package of documents of a standard type. Registration of an open joint stock company is complicated only by the need for documentary confirmation of promotional securities.
The charter
The main document of incorporation for an LLC is the charter. It is approved in writing by all participants in the creation of this form of economic type. It prescribes their shares and parameters of joint activities.
The charter is also the main document for organizing the activities of a joint stock company. Only to all the points in it was added a clause on the ownership of stock papers and the procedure for handling them. For example, in the West it is stipulated that the founder of a company cannot be necessarily deprived of a share of shares by decision of the Board of Directors, which has the right to alienate, i.e. dismissal of company executives (top managers) from management and deprivation of 10% of the shares received "as a reward" for the post. There is no such practice in Russia. Not yet.
