Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

the JSC only to the extent of their shares’ par value. A single
individual or legal entity may be the founder or the shareholder of a
JSC. The charter capital of a JSC is divided into a fixed number of
shares of a stated par value. A JSC has a Board of Directors
comprising at least three individuals who are either shareholders or
independent directors. The Supervisory Board is mandatory for
JSCs with more than 50 shareholders.
General Meeting of Shareholders (GMS) is the supreme body in
JSC. Azerbaijani law sets a minimum amount of share capital
required for the establishment of JSCs, which ranges from 2,000
AZN for closed JSC and 4,000 AZN for open JSC. Additional
statutory requirements exist for the establishment of banks and
insurance companies in the form of JSC.
Cooperative
Cooperative, a concept close to a Building Society, is a voluntary
union of at least five individuals and/or legal entities, for the
purpose of satisfying needs of its members through the
consolidation of their financial or in-kind resources. Depending on
the purpose of their activity, cooperatives may be of different
kinds, such as consumer or housing cooperatives.
Non-Commercial Organisations
An Azerbaijani non-commercial or not-for-profit organization is an
entity created to engage in various public, social and economic
activities, not related to the generation of profit and distribution of
such profit to its equity holders.
Since an Azerbaijani non-commercial organization is treated as a
legal entity, it may own property, enter into contracts, acquire
ownership and intellectual property rights, incur obligations in its
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