In the economic conditions of our state, legislatively established types of business entities may exist. The company, based on the conditions of its operation, can choose any approach.
Joint-stock companies were previously divided into open (open joint stock company) and closed (closed joint stock company) types. Current legislation has abolished these names. Today, the company was renamed to AO. This form of management retained certain features of the organization of activity.
How OJSC differs from AO will be considered further. Each owner of the enterprise can decide on the reorganization of his company from one form to another.
General concept
It is necessary to consider the general concept of organization principles in order to conclude how AO differs from OJSC. Companies of the type represented are created by several founders. They add up their resources, forming the authorized capital from their property. To fix their participation, special securities (CB) are issued. They are called common stocks.
When creating a company, the relevant documentation indicates how many securities and what par value will be in circulation. The conditions for the distribution of shares determines the status of the company itself.
At the end of the reporting period, each shareholder can receive a return as part of the net profit. It is proportionally equal to the share that the founder contributed to the authorized capital. Such securities also give their owner certain rights.
Organization Features
The principles of creation and operation have several features. What is the difference between JSC and JSC, what is the difference? This will become clear when considering the principles of work of such companies.
If the number of shareholders who founded the company does not exceed 50 people, this is AO. Such an organizational form is acceptable for medium-sized businesses. But this is not the only difference. The basic principle by which the represented enterprises are divided into joint-stock companies and joint-stock companies is to distribute shares.
The number of shareholders who form the authorized capital of the company is not limited. Therefore, this principle of operation is more suitable for a large business. The authorized capital at creation must be at least 1000 minimum wages (minimum wage). In AO, securities can be acquired only by a certain circle of persons. Moreover, the authorized capital with this form of management is less than 100 minimum wages.
AO may not publicly present its results for the reporting period. OJSC, on the contrary, is obliged to provide such information openly.
Principal differences
There are a number of features that assumes the assigned status of the company at creation. The fundamental difference is the approach to the implementation of the Central Bank. OJSC distributes its shares freely, without coordination of this process with other founders. Medium-sized enterprises can sell the Central Bank only after the consent of all persons who have contributed their share in the authorized capital.
This is one of the main principles of how JSC differs from AO. For the workers of the first of them there is an opportunity to purchase shares of the enterprise where they work. Also, the right to acquire a share in the authorized capital is not only individuals but also legal entities. If desired, each employee owning the Central Bank can implement them. But in AO, only the founder (individual) can be a shareholder.
Shareholder Rights
Considering how OJSC differs from JSC, it is necessary to say a few words about the rights of shareholders.In each of the presented forms of organization of the company’s activities, the owner of such securities has a voting right when deciding on the subsequent operation of their company. The more shares a subject has, the more significant his opinion is when voting. If a shareholder owns 50% + 1 share, he fully manages this enterprise.
The liability of the owners of such securities is limited only by the share that they contributed when creating the company (except as provided by law).
A shareholder of the company has the right, at its discretion, to sell the Central Bank without notifying others. But for a company organized as an AO, this is unacceptable. Sale of shares in this case is possible only after the agreement of all founders.
Benefits
Considering how JSC differs from JSC, it should be said a few words about the advantages of each form of management. For medium-sized businesses, it is easier to organize an enterprise with a relatively small authorized capital. Such a company does not have to publicly provide information about its activities.
OJSC, however, has the advantage of investor interest in providing additional financial resources to such an organization. Due to the transparency of accounting, providing information on the results of the enterprise, credit rating such companies are high. This opens up new perspectives and opportunities for them.
Having considered how JSC differs from JSC, you can highlight the pros and cons in each form of management. Regarding the existing business environment, the company chooses a more suitable option for its activities.
