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What is Joint Stock Company
Joint Stock Company is the type of company whose capital is divided into a number of shares of a certain value.

Joint Stock Company is the type of company whose capital is divided into a number of shares of a certain value. This is the so called capital company. The joint stock company is responsible for a breach of its obligations with all its assets. A shareholder is not liable for the obligations of the company.

The joint stock company can collect the equity from different owners and using this equity to make a business plan. The owners of the joint stock company are amended by buying and selling shares. The joint stock company was founded in the 17th century as a form of ownership of large commercial and industrial enterprises.

Foundation of joint stock company is dependent on the laws of the country where the company is based. Usually it is drawn up in the Articles of Association (more founders) or memorandum (one founder). Statutes are another important document. The joint stock company may be formed in two ways:

  • Shares public offering (successive foundation) see also IPO
  • Without a public offer for subscription of shares (simultaneous foundation)
  • To buy a joint stock company as a Shelf Company

Bodies of the joint stock company are:

Cancellation of a joint stock company may take place with or without liquidation. Liquidator is appointed and dismissed by the General Assembly. Remaining assets are divided among shareholders in proportion to the value of their shares.

Related terms and methods:

Related management field:

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Other information and sources (International)
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Last update: 04.09.2015

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