"JSC": abbreviation decoding

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In Russian business, the abbreviation OAO is very popular. Its decoding is simple and understandable to most ordinary people. At the same time, there are features of doing business within the framework of this organizational and legal form.

What does the abbreviation "JSC" mean?

The use of abbreviations is a standard world practice that has not bypassed Russia. Document specialists, entrepreneurs and ordinary people in our country every day face various letter abbreviations, among which one of the most popular is “OAO”. The decoding of this abbreviation is simple - "Open Joint Stock Company". This term denotes the organizational and legal form of an enterprise (one of several popular ones, along with "LLC", "ODO", "CJSC", provided for by the laws of Russia).

Business, therefore, can be conducted within the framework of one of the above statuses. There are many differences between these legal forms. Let's take the most important ones. In "JSC" shareholders have the right to give a share in the company in favor of other persons, not coordinating this with the meeting of other holders of securities. In "CJSC" 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 valuablepapers with properties similar to shares are not conducted in principle. The relationship between shareholders and the procedures for cashing out earned money will be completely different.

"AKB": banking term

Along with a lot of abbreviations that take place in business and legal circulation in Russia, there is such a combination of letters as AKB. It is easy to see that it is typical mainly for financial institutions.

Most often this abbreviation is used in cases when it comes to the official spelling of their name, as well as in the case of a combination of letters "OAO". "AKB" (decryption in the most common sense - "Joint Stock Commercial Bank") - an abbreviation that can denote completely different commercial structures.

"AKB": alternative interpretations

There are some more options for interpreting this combination of letters: “Association of Credit Brokers” (organizations and entrepreneurs engaged in intermediary services in obtaining loans) or “Corporate Security Agency” (a full-time or outsourcing structure whose tasks are to carry out security activities, work on protecting business information and other related functions). It is important, therefore, not to make a mistake in deciphering the letters "AKB", which can denote types of commercial entities related to a wide variety of areas.

"LLC" and "JSC" as popular forms of doing business

Two abbreviations are very common in Russian business practice. This is dueease of registering businesses within two organizational and 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 for profit, that is, commercial), which operates based on the charter. He has capital, which is divided among the founders of the business in the agreed proportions. The composition of the founders of "LLC" is limited (no more than 50 people).

"OJSC" (deciphering the abbreviation, by the way, is almost always required when drawing up commercial contracts) is a form of an enterprise in which the authorized capital is divided into shares - securities that belong to the participants. They can be sold or transferred (donated) by any other persons without agreement with 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 "JSC" will require an amount 10 times greater.

Russian Railways as an example of a brand in the form of OAO

Perhaps every Russian is familiar with the abbreviation JSC "Russian Railways". Its decoding 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 its modern legal form, this company was registered only in 2003, but in fact its activities began in the days of the Russian Empire.

At 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, which regulates the development of railway communication. The 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 now Russian Federation began its work. In the early 2000s, the government's railway reform program was approved, under which the state company Russian Railways was established in its modern form.

OJSC is what big business needs

In the ranks of giant companies, such an organizational and legal form as “JSC” has gained the greatest popularity. Deciphering the abbreviation, perhaps, is not needed even by a simple layman - this combination of letters is so understandable and common. The popularity of "JSC" among large businesses is due to the fact that in this status it is easier for companies than, say, in the form of "CJSC" or "LLC" to attract investment capital. The most noteworthy nuances of the functioning of the "JSC" are as follows. It has already been noted above that the main tool for working with profit in joint-stock companies is securities, and in OAO their owners can handle them as they wish, without agreement with other participants.

It is also important to note that an "OJSC" can conduct an open sale of shares on stock exchanges, which is impossible when working in the status of "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 principle, decoding is not needed to understand what “OJSC” is, then in order to study the actual operation of enterprises in this legal form, an interested person will have to thoroughly immerse himself in the analysis of published documents.