CJSC is an acronym that stands for Closed Joint-Stock Company. It refers to a type of legal entity or business structure that exists in several countries, including Russia, Ukraine, Belarus, and Estonia.
A CJSC is formed through the establishment of a company with a fixed capital divided into a certain number of shares. The ownership of the CJSC is restricted to a limited number of shareholders, typically between 2 to 50 individuals or legal entities. The shareholders contribute to the company's capital by purchasing shares, becoming co-owners of the CJSC. These shares are not publicly traded on any stock exchange, and the transfer of ownership requires the consent of other shareholders.
CJSCs have a separate legal identity from their shareholders and are responsible for their own obligations and debts. This means that the shareholders' liability is limited to the value of their investment in the company. The governing body of a CJSC is usually a general meeting of shareholders, where major decisions are made. However, the day-to-day operations are managed by a board of directors or a general director appointed by the shareholders.
CJSCs are typically engaged in various business activities, from manufacturing and trade to services and technology. They offer advantages, such as limited liability and clear ownership structure, which make them an attractive option for small and medium-sized enterprises. However, the formation and operation of a CJSC are subject to specific legal regulations in each country, which vary in terms of capital requirements, shareholder restrictions, and corporate governance.