Joint Stock Company In Russia

A joint stock company is a commercial organisation registered capital of which is divided into a certain number of shares certifying contractual rights of the participants of the company (shareholders) in respect of the company.

Shareholders are not responsible for the company's liabilities and carry the risk of losses related to the company's operations only up to the value of their shares.

Shareholders have the right to divest the shares they own without consent of other shareholders and the company; the shareholders of a closed joint stock company have the preferential right to purchase the shares in question.

Individuals and legal entities may become shareholders of a joint stock company. Such company cannot have just one shareholder - another company consisting of a single individual.

A minimal registered capital:

* open joint stock company - 100,000 roubles (thousand times minimal monthly wage as set in Russia);

* closed joint stock company - 10,000 roubles (hundred times minimal monthly wage as set in Russia).

A joint stock company must have a company name and a round company seal (stamp).

The Articles of Association is the constituent document of the company.

The shareholders' general meeting is the supreme authority of the company.

The general management of the operation of the company is performed by the Board of Directors.

The management of the current operation of the company is performed by a sole executive authority of the company (director, director general) or by a sole executive authority of the company and a collegial executive authority of the company (executive committee, directorate).

The location of the company is determined by the place of its state registration of the location of the permanent executive body.