Closed Joint Stock Company (CJSC)

a joint-stock company whose shares are distributed only among its founders or other predetermined circle of persons. Such a company is not entitled to conduct an open subscription for shares issued by it or otherwise offer them for purchase to an unlimited number of persons. Shareholders of a CJSC have a pre-emptive right to acquire shares sold by other shareholders of this company. The number of participants in a CJSC must not exceed the number established by the law on joint-stock companies. Abroad, a "closed company" is understood as a firm controlled by a limited number of persons, the number of which is established by the legislation of the country.