Share capital

To open any enterprise or firm, you need seed capital, that is, a fund of money intended for starting an entrepreneurial activity. If the charter capital is formed on the basis of share contributions of members, instead of receiving shares, then each owner has his own share capital. The total size of this indicator can be calculated as the difference between the assets and liabilities of the company.

The management of the created organization should correctly dispose of the available funds. Share capital is a manageable quantity, and it should be regulated in accordance with rapidly changing market conditions. There are several types of shares, so the formation of funds can be made according to several scenarios. As a rule, it is expedient to combine preferred and ordinary shares, the main subtlety is to choose the right proportion. Preferred shares provide the holder with a stable income in a fixed amount, however, according to the ordinary type of these securities, the profit may be higher, but the payments are not always stable.

The authorized capital of OJSC expresses the nominal value of all issued shares. According to the current legislation, a legal entity has the right to issue ordinary and privileged shares of any kind, but their proportion should not be violated and is 75% and 25% respectively. In addition, the law provides for a minimum amount of share capital. For an open society it amounts to 1000 minimum monthly wages or an SMIC, and for the registration of a closed company only 100 minimum wages will be required. If the number of shareholders of a legal entity exceeds the 50 mark, then each of them must be registered in the company's documents.

The capital of the joint-stock company is subject to adjustment, if there are serious grounds for that. As a rule, the head of the enterprise conducts measures to increase or decrease the capital, as well as to change its structure. The increase is required in situations where there is a need to attract finance for a long period, and borrowed funds are an expensive pleasure. This is achieved by raising the par value of each share or increasing their number by additional issue. Similarly, the share capital is reduced by decreasing the nominal value or the number of shares.

By changing the structure of the statutory fund we mean qualitative changes in the proportional distribution of shares. The decision to restructure is made by the general agreement of the shareholders at the annual meeting. After obtaining permission, the company's management conducts a procedure for splitting shares, that is, their exchange for the same securities of a smaller denomination. Topical this method is considered for companies that have a nominal value of shares is large enough, which means that for the investor this is a high risk. Crushing helps investors first and encourages their involvement. And the tax burden on owners decreases .

Consolidation is an activity opposite to fragmentation, that is, consolidating securities into one group or category. This is also aimed at increasing the investment capital due to the increase in the reliability of the shares. The primary goal of this procedure is to provide comfort for owners of funds.

It would be desirable to separately note the period in which the share capital should be formed. After collecting and filing all the documents required for the formation of a legal entity, it is necessary to start issuing shares. In full, the authorized capital must be paid in a month after the official registration.