OJSC and CSC

OPEN JOINT STOCK COMPANY 

• If the participants of the Joint Stock Company can alienate the shares belonging to them without the consent of other shareholders, it is considered JSC;
• This joint-stock company carries out open subscription to the issued shares, that is, it carries out their free sale;
• The subscription to shares in OJSC is determined by the founders, the company can sell its shares directly by itself, through a bank or stock exchange;
• The subscription to shares must be announced in the mass media, the duration of the subscription should not exceed 6 months;
• OJSC is obliged to publish its annual report and financial statements (except for micro and small business entities) every year for everyone to get familiar with;

CLOSED JOINT-STOCK COMPANY 

•  A company whose shares are distributed only among the founders and can be alienated with the consent of the majority of its founders is considered a JSC;
• CSC may not conduct open subscription to the issued shares or otherwise offer them to an unlimited number of persons to acquire them;
  JSC can distribute its shares only among the founders or among other predetermined persons;
• SC shares are acquired in accordance with the agreement concluded between the founders;
• According to Article 100.3 of the Civil Code, the company must publish its annual report and accounting balance for everyone to see;
• The number of participants of CSCs is set at 50 individuals and legal entities;
• The minimum limit of the authorized capital of JSC is 2000 manats.

In the company name of the joint-stock company, its name, as well as the words “open-type joint-stock company” or “closed-type joint-stock company” should be indicated.

According to Article 17 of the Law on Joint-Stock Company, the minimum size of the Company’s Charter fund is set at 10 million manats for open-type companies, and 5 million manats for closed-type companies.