2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The authorized capital of a joint stock company consists of the nominal value of its securities. The issue of shares and their placement is carried out directly upon the establishment of the company (among its participants), as well as in the case of a decision to increase the authorized capital with the help of additional shares (or when converting other securities into them).
Securities such as shares confirm the right of holders to a share in the capital of the company, as well as all the rights that follow from this (management, receiving part of the profit, disposing of shares, etc.). They are perpetual documents that cease circulation only when their issuer leaves the market.
Issuing shares is a necessary measure that most companies resort to when they need additional funds for development. This is the best alternative to loans and finding investors.
Issue of shares - the issue of securities, carried out in a manner strictly regulated by law. Regulation of the procedure at the state level is carried out in order to protect investors from possible dishonesty of issuers.
Possible to hold severalshare issues: ordinary and preferred (with a nominal value of not more than 25% of the authorized capital).
Additional issue of shares is accompanied by amendments to the Charter. Its main stages are: making a decision on the issue, registration of the issue, production of certificates (with a documentary form of issue), direct placement of securities and further registration of a report on the results of their issue.
If the number of shareholders is more than 500 (or the total value of the shares is more than 50 thousand minimum wages), then you will need to register an emission prospectus (in this case, the issue is considered public).
An additional issue of shares is a complex and strictly regulated procedure that requires extremely transparent reporting and openness of information about the issuer.
When registering an issue, the obligations of the issuer are specified (in writing), and the entire issue is assigned a state number. In case of a public issue, the company is obliged to provide investors with free access to the information they need. At the same time, the company must publish reports on activities (quarterly reports of the issuer with data on financial condition). The placement of shares can only begin after the end of registration.
The decision on an additional issue is made by absolutely all participants of the enterprise at the general meeting of shareholders.
The amount of rights granted to the owner of a share depends on whether it is ordinary or preferred. Dividend payments are directly proportional to financial resultswork of the society for the year. The company has the right to decide not to pay dividends, instead directing profits to the development of production.
The issuance of shares contains risks, since the issuer may make a mistake in the calculations, as a result of which additional securities will not be placed (potential investors will not buy them), which will reduce the value of already quoted shares.
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