What is OJSC

An open joint-stock company (OJSC) is one of the types of joint-stock companies whose participants may 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 upon their issue.

Instruction manual

1

In other words, an open joint-stock company is an association of citizens or legal entities for the purpose of joint business activities conducted through open and free purchase and sale of shares. This is how the formation of the authorized capital of a joint stock company occurs.

2

The authorized capital in an OJSC is a combination of a number of shares. Each share plays the role of a title for its owner. It provides an opportunity to receive part of the joint-stock company's income (dividend), and also limits the entrepreneurial responsibility of each participant. The shareholders of the company are not liable for its obligations, but have some risk of losses associated with the size of their share in the authorized capital.

3

An open joint-stock company has some features that distinguish it from another form of joint-stock business - a closed joint-stock company (CJSC). OJSC seeks to place its shares among the widest possible range of shareholders. For this purpose, it resorts to an open subscription for shares, unlike a closed joint-stock company, which places its shares only among a certain circle of people. The number of participants in an open joint-stock company can be unlimited, while in a closed joint-stock company they cannot be more than 50. The minimum authorized capital in an open joint-stock company must be at least 1, 000 minimum wages, while in a closed joint-stock company - 100 minimum wages.

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 formation of the company and represents the initial placement of securities. Additional issue occurs during the functioning of the organization and is aimed at attracting additional funds to increase the authorized capital.

5

An open joint stock company is the most stable form of pooling capital in modern conditions. The withdrawal of one or several members from the membership of the company does not lead to the closure of the company. A shareholder has the right to sell his shares without the consent of other participants, which is most often not reflected in the work of the company.