Surely everyone has come across the concept of a company at least once in his life, but not everyone knows how this abbreviation is deciphered, although every educated person needs to know this. So what is a CJSC?
CJSC stands for closed joint stock company, it is one of the organizational and legal forms of commercial organizations. (Commercial organizations can also be open joint stock companies (OJSC), general partnerships, limited partnerships (limited partnerships), limited liability companies (LLC), additional liability companies (ALC), unitary enterprises, as well as production cooperatives).
The main feature of a CJSC is that the number of shareholders in it must not exceed fifty capable people, and the authorized capital must be equal to the par value of the company's shares, which were acquired by the shareholders. Shares of a closed joint stock company are divided into ordinary shares, giving the right to vote at meetings, but not guaranteeing the receipt of dividends, and preferred. Preferred shares do not provide voting rights, but they provide priority receipt of dividends. The Law states that the minimum authorized capital of a closed joint stock company must be at least one hundred times the minimum wage.
The UAB is created to make a profit and can carry out any legal activity. It is important to remember that certain types of activities are subject to compulsory licensing.
The general meeting of shareholders of the company is the supreme governing body.
Today, a closed joint-stock company is a fairly popular form of entrepreneurial activity, but it is less common than an LLC. The thing is that the economic and legal support of the CJSC is complicated by the need to register the issue of shares and the subsequent maintenance of the register of shareholders. Thus, the creation and development of a closed joint stock company requires, as a rule, huge financial costs. Therefore, such an organizational and legal form as a CJSC is most often registered to create large enterprises with a large amount of capital.