In the Russian business,abbreviation "JSC". Deciphering it is simple and understandable to most ordinary people. There are, at the same time, peculiarities of doing business within the framework of this organizational and legal form.
What is abbreviation "JSC"?
Use of abbreviations - standard worldpractice that has not bypassed Russia. Document experts, businessmen and ordinary inhabitants of our country face different letter cuts every day, among which one of the most popular is JSC. The interpretation of this abbreviation is simple - "Open Joint-Stock Company". This term refers to the organizational and legal form of the enterprise (one of several popular, along with "LLC", "ODO", "ZAO", provided by the laws of Russia).
Business, therefore, can be conducted within the framework ofone of the above statuses. There are many differences between these legal forms. Let's take the most important. In "OAO" shareholders have the right to give a share in the company in favor of other persons, not agreeing it with the meeting of other holders of securities. In "ZAO" priority in the sale of shares belongs primarily to members of the company, and then third parties. In the case of "OOO" and "ODO", work with securities with properties similar to shares is not conducted in principle. The relationship between shareholders and the procedures for cashing out the money earned will be completely different.
"AKB": banking term
Along with the many abbreviations taking place in thebusiness and legal turnover in Russia, there is such a combination of letters, as AKB. It is easy to see that it is characteristic mainly for credit and financial institutions.
Most often, this abbreviation is used incases when it comes to the official writing of their name, as well as in the case of the combination of letters "JSC". "AKB" (the decoding in the most common sense - "Joint-stock Commercial Bank") is an abbreviation that can mean absolutely different commercial structures.
"AKB": alternative interpretations
There are still some options for interpreting thisletters of association: "Association of Credit Brokers" (organizations and entrepreneurs engaged in intermediary services in obtaining loans) or "Corporate Security Agency" (staffing or outsourcing structure, whose tasks are to carry out security activities, work to protect business information and other related functions). It is important, therefore, not to be mistaken in deciphering the letters "AKB", which can denote the types of commercial entities that are relevant to a wide range of areas.
"Open Company" and "Open Society" as popular forms of business dealing
Very large prevalence in the Russianbusiness practice has two abbreviations. This is due to the ease of registration of businesses within the framework of two organizational and legal forms: a limited liability company and an open joint stock company - this is the interpretation of "LLC" and "OJSC" respectively. Let's take a closer look at the details of the work of these two types of enterprises. "LLC" is a society (almost always created for the purpose of making profit, that is, commercial), which conducts work based on the charter. He has capital, which is divided between the founders of business in the specified proportions. The membership of the founders of LLC is limited (no more than 50 people).
"OJSC" (deciphering the abbreviation, by the way, almostis always required when drafting commercial contracts) is the form of an enterprise in which the share capital is divided into shares - securities that belong to the participants. They can be sold or transferred (donated) by any other person without agreement with other owners of shares in the firm. To open the "LLC", it is enough to have 10 thousand rubles for the authorized capital. The registration of "OJSC" will require an amount 10 times greater.
"Russian Railways" as an example of a brand in the form of "OJSC"
Perhaps, every Russian knows the abbreviationJSC Russian Railways. Its interpretation is simple - open joint-stock company "Russian Railways". The history of this company, which is one of the largest passenger rail carriers in the world, is interesting. In modern legal form, this company was registered only in 2003, but in fact its activities started back in the times of the Russian Empire.
First, the country's railways were managedMinistry of Railways, founded in 1865, and with the formation of the USSR appeared the People's Commissariat, which regulates the development of railway communication. Peak load indicators of the railways of our country were recorded in 1988, but economic problems related to restructuring almost immediately began. In the 1990s, the Ministry of Railways began to operate the Russian Federation. In the early 2000s, a government program for reforming railways was approved, within which a state-owned company, RZD, was established in the modern form.
"OJSC" is what big business needs
In the ranks of giant companies the greatest popularityhas received such organizational legal form, as "Open Society". Explanation of the abbreviation, perhaps, is not necessary even for the common man in the street - so this letter combination is understandable and common. The popularity of JSC in the environment of large business is due to the fact that in this status companies are easier than in, say, in the form of "ZAO" or "OOO", to attract investment capital. The most noteworthy nuances of the functioning of JSC are as follows. It has already been mentioned above that the main tool of working with profits in joint-stock companies is securities, and in "JSC" their owners can treat them as they want, without agreement with other participants.
It is also important to note that JSC can conductopen sale of shares on stock exchanges, which is impossible when working in the status of "ZAO". An important condition for doing business in the regime of an open joint stock company is the annual publication of accounting records relating to accounting, profit and loss. If, in order to understand what "JSC" is, decryption is, in principle, not necessary, then to study the actual work of enterprises in this legal form, an interested person will have to immerse himself thoroughly in the analysis of published documents.
