In accordance with the Law of Turkmenistan on joint-stock companies, a joint-stock company (hereinafter referred to as a company) is an enterprise in which the contributions of individuals and (or) legal entities are combined into an authorized fund, divided into a certain number of shares, certifying the mandatory rights of the company's participants in relation to joint-stock company.
The company can be open or closed.
An open society has the right to conduct an open subscription for shares issued by it and to carry out their free sale in accordance with the requirements of the legislation of Turkmenistan. Shareholders of an open company may alienate their shares without the consent of other shareholders of this company.
An OJSC has the right to conduct a closed subscription for shares issued by it, if this is provided for by the charter of the company.
A company in which shares are distributed only among its founders or other predetermined circle of persons is a CJSV. Such a company is not entitled to conduct an open subscription for shares issued by it.
Shareholders of a CJSC have a pre-emptive right to acquire shares in the company or shares sold by other shareholders of this company.
The number of shareholders of an OJSC is not limited. The number of shareholders of a CJSC may not exceed fifty. A company cannot have as its sole founder (shareholder) another enterprise consisting of one person.
Source: Law of Turkmenistan on Joint Stock Companies
