Joint Stock Company - is a fundamentally new form of industrial organization, established on the basis of the voluntary participation of its members with a certain part of the total capital of the company.The creation of such economic relations was a natural result obtained in the process of transformation and development of private entrepreneurship.
At a certain stage of its existence, the increasing level of technology, the organization of the financial sector and the scale of production processes have created the prerequisites for attracting venture capital is one of many people who, for various reasons, do not themselves engage in commercial activities.Responsibility of shareholders of the combination is limited by the size of their contributions.This condition, together with a high concentration of capital allows profitable investments not only in the long-term, but also risky projects, which significantly speeds up the introduction of the latest developments of scientific and technical sphere.
Joint Stock Company - is the main organizational form of large enterprises and companies.The productive sectors of any country of the world are united capital individuals and corporations are the most perfect from the legal point of view, the mechanism in the economic sphere.
The main features of the company include:
- the division of total capital stock;
- the imposition of liability to shareholders for the obligations of the organization only the amount of contribution to the statutory fund;
- organizing activities under the adoption of the Charter, which is the basis for changes in the size of mobile capital and total number of participants;
- concentration of business management in the hands of the directorate (management board).
Joint Stock Company - is a form of property, which has a number of advantages:
1. The company has a real opportunity to raise funds of shareholders, which will increase its statutory fund, and will expand the area of activity.
2. Branch of the general management of a specific control allows you to select the most suitable candidates Directors.Shareholders interested in the efficiency of production, serious approach to the appointment of leading cadres.
3. Each member of the staff has the right to become a full owner, buying a certain percentage of shares.
4. You can create a network of interested contractors by purchasing securities of other companies and their implementation.
Joint stock companies are of two types - closed and open.The first type involves combining the presence in its composition is not more than fifty participants.If this limit is breached, the registration must be made public corporation.Of the closed mold exempted from publishing the results of its economic and financial activity.That is why they do not have control of external users of information over the functioning of the enterprise.
Open Joint Stock Company - is an organizational form that has the ability to attract big business.A large number of participants provides the most favorable conditions for investing large enough means to develop production.Shareholders are entitled to sell their portion of the securities to any buyer at an agreed price.In order to have control over the situation in the company and the owner of a policy, it is enough to have a package consisting of fifteen percent of the securities comprising the charter fund.
Joint Stock Company - is one of the main prerequisites for the country's economic reforms.Widespread and formation of this type of association to create normal conditions for the activity of enterprises.As a convenient form for the transfer of public companies to private ownership form, joint-stock companies can effectively monitor the performance of management structures.
