This form of business activity among Russian entrepreneurs is quite common. However, a closed joint - stock company (CJSC) is less popular than LLC.
In addition to legal, there are economic differences. Based on current applicable law, closed joint-stock companies require more effort with legal support than LLC. This fact, respectively, leads to an increase in financial expenses. This is because closed
joint stock companies have a
register of shareholders and are required to keep it. Also, these enterprises need to register the
issue of shares, and any shareholder can only sell their shares.
The company forms the authorized capital based on the value in nominal value of its shares acquired by shareholders. Closed joint-stock companies of Moscow must provide the authorized capital in the amount of 10 thousand rubles (minimum), which is paid both in the form of cash by opening a
savings account in the bank, and by depositing some property or property rights that have a certain monetary value. Any of the above forms of payment for shares should be determined by the relevant agreement when creating the company. The charter of a company may stipulate restrictions on certain types of property used in the
form of payment for shares. At the same time, you need to remember the need to assess property contributed in non-monetary form to the authorized capital. Such an assessment is carried out by a specialist - an independent appraiser.
Closed joint-stock companies are created to maximize profits. To this end, they are allowed by applicable law to engage in activities specified in this legislation. However, for certain activities it is necessary to obtain special permits (patents or licenses). The period of functioning of the company has no restrictions, unless otherwise specified in the Charter.
Closed joint-stock companies have the highest governing body, known as the General Meeting. Its exclusive competence is regulated by the relevant Law of the Russian Federation. At the same time, this General Meeting cannot consider and make decisions on those issues that are not within its competence.
The current activities of the enterprise are managed by the executive body, which is represented both as a sole and collegial body (for example, one person - the General Director in the first case or the board of directors in the second). Moreover, any executive body is accountable to the General Meeting.
In order to control the financial and economic activities of the company, the general meeting should form an audit committee of the company, whose members cannot simultaneously hold other positions in the management bodies of the enterprise or be members of the board of directors. Those shares owned by representatives of the Board of Directors may not participate in the election of members of this audit commission.