Contents Understanding commercial law The history of the formation and development of commercial law Principles of commercial law The concept and types of subjects of commercial law

Additional Liability Company
Additional Liability Company (ALC) is a commercial organization, the authorized capital of which is divided into shares of predetermined sizes, formed by one or more persons jointly and severally liable for its obligations to their property in the amount of a multiple of the value of their contributions to the authorized capital. This liability arises only in the event of insufficiency of the property itself for society to cover the debts it has incurred, that is, in a subsidiary manner. Thus, the liability of the ALC participants remains limited - recovery of the company's debts cannot be applied to all their property.
In case of bankruptcy of one of the participants, its liability for the debts of the ALC is distributed among the rest in proportion to their contributions (constituent documents may other rules to be established).
Otherwise, the status of this economic company is like the status of a limited liability company, which entails the application of relevant legal norms to it.


Joint-stock company
A joint stock company (JSC) is a commercial organization whose authorized capital is divided into a certain number of shares, formed by one or more persons who are not liable for its obligations and who bear the risk of losses associated with the activities of the company, within the value of their shares.
Joint-stock companies are divided into open (JSC) and closed (CJSC). Open JSCs have the right to sell shares to everyone, closed JSCs can distribute shares only between the founders or other predetermined circles of persons.
In an open joint stock company, it is not allowed to establish a pre-emptive right of a company or its shareholder to acquire shares alienated by the shareholders of this company.
Shareholders of a CJSC enjoy the pre-emptive right to acquire shares sold by other shareholders of this company at the offer price to a third party in proportion to the number of shares owned by each of them unless the company's charter there is a different procedure for the exercise of this right. The charter of a CJSC may provide for the company's pre-emptive right to acquire shares sold by its shareholders if the shareholders have not exercised their pre-emptive right to acquire shares.
The number of members of a JSC is not limited. CJSC can consist of no more than 50 participants.
The minimum amount of the authorized capital of a JSC must be at least 1000 minimum wages, CJSC - 100 minimum wages.
The law requires payment of the first 50% of the shares within 3 months from the date of state registration of the company. The remaining 50% of the shares must be paid up within a year. In JSCs with more than 50 members, a supervisory board (council directors) is a permanent body of shareholders controlling the managers (directors) of the company.
The exclusive competence of the general meeting of shareholders is determined by law. It doesn't have the right to consider issues not directly related to its competence, and to take on solutions.
The Supervisory Board (Board of Directors) also has exclusive competence, determined by the law and the charter of the company. The executive body of a joint-stock company may be sole (director, general director) or collegiate (board, directorate).