Organizational and legal forms

A legal entity means a legal entity that has its own property, legal address, stamp and is able to answer for its actions in court. At present, different organizational and legal forms of economic entities are singled out.

In general, it can be noted the division into commercial and non-commercial forms. The former function for profit in the future, while the latter function social programs in the course of their activities. The organizational and legal forms of commercial enterprises are of the greatest interest, since they provide the expanded reproduction. So, allocate:

1. Companies with limited and additional responsibility.
2. Joint Stock Companies.
3. Partnerships.
4. Production cooperatives.
5. Unitary enterprises.

The essence of any society is that its charter capital contains constituent parts or shares that have been contributed by different persons in the form of shares. A limited liability company, or LLC, is attractive to investors in that the repayment of obligations to counterparties and creditors is strictly within the available means, that is, personal property of depositors is untouchable. Thus, investors risk only the amount within the deposit. Joint responsibility is assigned to members of the company of additional responsibility. In case of liquidation of an enterprise, the amount of debt is divided among all investors in proportion to the amount of contributions. And the personal property of investors is subject to recovery even with a shortage of assets at the disposal of the company.

The solution of the most important issues in society is carried out through convening a meeting, where each of its members has the right to vote. The procedure for leaving the organization depends on the pre-approved constituent policy. With the consent of the majority of council members, the charter of the company may contain a note:

- the impossibility of reselling or transferring its stake to third parties;

- on the requirement of the written consent of all investors to sell their shares or free exit from society.

There are also such organizational and legal forms as joint-stock companies. For them, not only the equity contribution is characteristic, but also the calculation of the nominal value of shares issued by the founders. That is, the charter capital of a firm consists of a certain number of issued shares of an established nominal value. These organizational and legal forms of management are closed and open type. Representatives of the second type allow their shareholders to sell or give to third parties their share in a free order. ZAO pre-establishes a certain range of shareholders, and the alienation of shares is not provided.

The next organizational and legal form of a legal entity is a partnership. These are enterprises, the authorized capital of which consists of separate shares, distributed among the founders. A partnership can be complete and on faith. Members of a full-fledged society enjoy all the rights of a legal entity:

• Conduct business activities;
• May be defendants in court;
• Responsible for the obligations of the firm personal property.

The partnership consists of several limited partners on the faith . These persons differ in that they are liable for the debt of the company only within the limits of amounts invested as a share in the start-up capital.

By decision of state bodies, a unitary enterprise is formed. Its characteristic feature is the lack of ownership of property. Indeed, the founders can manage the enterprise, make the most important decisions and, at their own discretion, distribute the profits, but all property and start-up capital can not be divided into parts or shares, as it is in the power of the state.

Often formed such organizational and legal forms as production cooperatives. It is an association of individuals who seek to achieve common goals. Cooperatives are formed on the basis of share and property contributions of their members. As a rule, they are engaged in production or sales activities.