A joint-stock company is a fundamentally new form of a production organization

A joint-stock company is a fundamentally newform of the production organization, created on the basis of the voluntary participation of its members, who possess a certain part of the company's total capital. The creation of such economic relations was a natural result obtained in the process of transformation and development of private entrepreneurship.

At a certain stage of its existencethe increased technological level, the organization of the financial sector and the scale of technological processes have created the prerequisites for attracting the capital of many individuals to one enterprise, which for various reasons independently do not engage in commercial activities. The liability of shareholders in such a merger is limited by the amount of their contribution. This condition, together with a high concentration of capital, makes it possible to produce profitable investments not only in prospective, but also in risky projects, which significantly accelerates the introduction of the latest developments in the scientific and technical sphere.

A joint-stock company is the mainorganizational form of large enterprises and companies. In the manufacturing sectors of any country in the world, such associations of capital of individuals and corporations are the most perfect legal mechanism in the economic sphere.

The main characteristics of the joint-stock company include:

- division of total capital into shares;

- the imposition of liability on shareholders for the obligations of the organization only in the amount of the contribution to the statutory fund;

- the organization of activities in accordance with the adopted charter, which is the foundation for mobile changes in the size of the aggregate capital and the number of participants;

- the concentration of enterprise management in the hands of the management (board).

A joint-stock company is a form of property that has a number of advantages:

1. The company has a real opportunity to raise funds of shareholders, which will increase its statutory fund and allow expanding the scope of activity.

2. Separating general management from specific management makes it possible to select the most suitable candidates for directors. Shareholders interested in production efficiency are seriously approaching the appointment of leading cadres.

3. Each member of the work collective has the right to become a full-fledged owner by buying a certain share of shares.

4. It is possible to create a network of interested counterparties by acquiring securities of other companies and realizing their own.

Joint-stock companies are of two types: closedand open. The first type of association involves the presence of no more than fifty participants in its membership. If this limit is violated, then an open joint-stock company must be registered. The organizations of the closed form are released from the obligation to publish the results of their economic and financial activities. That is why they do not have control over external users of information over the operation of the enterprise.

Open joint-stock company isThe organizational form, which has the ability to attract large capital. A large number of participants provides the most favorable conditions for investing sufficiently large funds that allow the development of production. Shareholders have the right to sell their part of the securities to any buyer at an agreed price. In order to have control over the situation in the company and pursue the owner's policy, it is enough to possess a package consisting of fifteen percent of the securities, which constitutes the statutory fund.

A joint-stock company is one of the mainprerequisites for economic reforms in the country. The wide distribution and formation of this type of associations creates normal conditions for the activities of enterprises. Being a convenient form for transferring state organizations into a private form of ownership, joint-stock companies make it possible to effectively control the work of administrative structures.