Lecture 4 Types of companies

 Can be established by 1 or more persons  Juristic person  Capital is divided for shares (depends on number of share-holders)  Share-holders have responsibilities no more than their shares in Company capital

 Paid by each holder  Can be paid in money or in other values  Amount of each share is under discussion (share-holders meeting)  Share of personal income of each holder depends on his (her) share in start capital

Share-holders board Manager Executive director -Changing of Statue documents -Annual financial reports -Income (outcome) distribution -Hiring of executive managers -Reorganization or liquidation -Financial control

 Can leave company  Can dispose by his share  Has supreme right to buy others holders share

 Capital is divided for certain number of stocks  Stocks can be bought (sold) by holders  Holders’ risks are limited by price of their stocks

 Give rights to manage by company  Have nominal and market prices  Dividends (annual bonuses for stockholders) depend on company’s financial results  Can be usual (regular) and privileged dividends  Stocks can be bought and sold on the financial markets (stock-exchange)  Capitalization….  Stocks and bonds….

 Open (Corporations, Public Company) Everybody can buy stocks on the open markets Corporation has to publish annual finance reports and income-outcome report  Closed JSC Only limited number of persons can buy stocks

 Major (share is more than 10%) // Minor  Income depends on share  Have rights to manage by corporation  Can dispose by their stocks  Get income – - Dividends (normally every year) - Stocks’ market price (if they sale stocks)

General meeting of shareholders Directors board MM GM (general director) -Changing of Statue documents -Annual financial reports -Income (outcome) distribution -Hiring of executive managers -Reorganization or liquidation -Financial control If >50 shareholders

 Cartel  Syndicate  Trust  Holding  Conglomerate

 Between companies that produce similar goods (services) for - Control the prices - Division of consumer markets - Identifying level of manufacturing - Inter-companies exchange (technologies, commercial information and so on) Are illegal in some countries

 Between companies that produce similar goods  Only about sale (common sales of products)  Companies didn’t lose their independence Are illegal in some countries

 Between companies that produce different goods  Companies lost their independence and are managed by centralized structure (board of directors)  Owners of companies become shareholders