In Russian business, the abbreviation "OJSC" is very popular. Deciphering it is simple and understandable to most ordinary people. At the same time, there are features of doing business within the framework of this legal form.
What does the abbreviation "OJSC" mean?
The use of abbreviations is a standard world practice that has not spared Russia. Document managers, businessmen and ordinary inhabitants of our country are faced with various letter abbreviations every day, among which one of the most popular is OJSC. Decoding of this abbreviation is simple - “Open Joint Stock Company”. This term denotes the legal form of the enterprise (one of several popular, along with “LLC”, “ODO”, “ZAO”, provided for by the laws of Russia).
Thus, a business can be conducted within the framework of one of the above statuses. There are many differences between these legal forms. Take the most important. In “OJSC”, shareholders have the right to give a share in the company in favor of other persons without agreeing with the meeting of other holders of securities. In ZAO, the priority in the sale of shares belongs primarily to the participants of the company, and then to third parties. In the case of LLC and ODO, work with securities with properties similar to shares is not carried out in principle. The relationship between the shareholders and the procedure for cashing the money earned will be completely different.
“Battery”: Bank term
Along with many abbreviations that occur in business and legal circulation in Russia, there is such a combination of letters as battery. It is easy to see that it is typical mainly for financial institutions.
Most often, this abbreviation is used in cases where we are talking about the official spelling of their name, as well as in the case with the combination of letters "OJSC". “AKB” (the most commonly used meaning is “Joint-Stock Commercial Bank”) is an abbreviation that can refer to completely different commercial structures.
AKB: alternative interpretations
There are some other interpretations of this letter combination: “Association of credit brokers” (organizations and entrepreneurs engaged in intermediary services in obtaining loans) or “Corporate Security Agency” (full-time or outsourcing structure whose task is to carry out security activities, work to protect business information and other related functions). It is important, therefore, not to make a mistake in deciphering the letters "battery", which can indicate the types of commercial entities related to a variety of areas.
“LLC” and “OJSC” as popular forms of doing business
Two abbreviations are very widespread in Russian business practice. This is due to the simplicity of registering businesses within two legal forms: a limited liability company and an open joint-stock company - this is the decoding of LLC and OJSC, respectively. Let us consider in more detail the features of the work of these two types of enterprises. “LLC” is a company (almost always created with the aim of making a profit, that is, commercial), which conducts work based on the charter. He has capital, which is divided between the founders of the business in the agreed proportions. The composition of the founders of LLC is limited (no more than 50 people).
"OJSC" (decoding of the abbreviation, by the way, is almost always required when drawing up commercial contracts) is a form of enterprise in which the authorized capital is divided into shares - securities that belong to participants. They can be sold or transferred (given) by any other persons without the consent of other owners of shares in the company. To open an LLC, it is enough to have 10 thousand rubles for the authorized capital. Registration of an OJSC requires 10 times the amount.
Russian Railways as an example of a brand in the form of an OJSC
Perhaps every Russian knows the abbreviation of Russian Railways. Its decoding is simple - Russian Railways Open Joint Stock Company. The history of this company, which is one of the largest passenger rail carriers in the world, is interesting. In the modern legal form, this company was registered only in 2003, but in fact its activities began back in the days of the Russian Empire.
First, the country's railways were managed by the Ministry of Railways , founded in 1865, and with the formation of the USSR, the People's Commissariat appeared, regulating the development of railways. Peak load indicators of the railways of our country were recorded in 1988, but almost immediately the economic problems associated with the restructuring began. In the 90s, the Ministry of Railways of the Russian Federation began to work. In the early 2000s, a government reform program on railways was approved, within the framework of which the state-owned company Russian Railways was established in a modern form.
"OJSC" is what big business needs
In the ranks of giant companies, the most popular was the organizational and legal form such as OJSC. Deciphering the abbreviation, perhaps, is not necessary even for a simple layman - so this letter combination is clear and widespread. The popularity of OJSC in the large business environment is due to the fact that in this status it is easier for companies than, say, in the form of a ZAO or LLC to attract investment capital. The most notable nuances of the functioning of OJSC are as follows. It has already been noted above that the main instrument for working with profits in joint-stock companies is securities, and their owners in the OJSC can handle them as they want without coordination with other participants.
It is also important to note that OJSC can conduct an open sale of shares on stock exchanges, which is not possible when working in the status of a CJSC. An important condition for doing business in the regime of an open joint-stock company is the annual publication of statements relating to accounting, profit and loss. If, in order to understand what “OJSC” is, decryption, in principle, is not necessary, then to study the actual work of enterprises in this legal form, an interested person will have to thoroughly dive into the analysis of published documents.