Page 18

Doing business in Armenia

Joint Stock Companies

A joint stock company is a legal entity, the charter capital of which is distributed into a certain number of shares, defining the rights and obligations of its shareholder in relation to the company. There are two types of joint stock companies: joint stock companies of open type and joint stock companies of closed type. Open Joint Stock Company may, without restrictions, issue shares and sell them to public. Every shareholder has the right to sell shares without consent of the other shareholders. In closed joint stock companies shares are distributed only among its shareholders (including founders) or pre-decided persons, and the number of shareholders is restrained (maximum envisaged by the law: 49 shareholders). Limited Liability Companies

A limited liability company is an economic entity, the charter capital of which is divided into shares the number of which is determined by its charter. The participants of the company are not liable for the obligations of the company and within the values of their contributions shall bear responsibility for the risks of losses related to the activity of the company. Supplementary Liability Company

A supplementary liability company is a company founded by one or several entities, the charter capital of which is divided into shares envisaged by the charter. Besides, the company participants shall bear subsidiary liability for the obligations of the company with their property in the same value (for all participants) of their contributions set forth by the charter of the company. In case of bankruptcy of any of the shareholders, his/her/its responsibility for the obligations of the company is shared among other shareholders. Š 2012 Grant Thornton CJSC. All rights reserved. 14

Doing_business_in_Armenia_2012  
Advertisement