OAO

OAO, standing for otvorennoe aktsionernoe obshchestvo in Russian, is the designation used for an open joint-stock company in Russia and some other post-Soviet states. It is a type of corporate entity in which the company’s capital is divided into shares that can be held by shareholders and freely transferred, allowing for public or private ownership of the company’s equity. Shareholders have limited liability, typically limited to the amount of their contributed capital.

In an OAO, governance generally involves a shareholder meeting, which approves major decisions, and a management or board structure that oversees day-to-day operations. The exact governance framework can vary by jurisdiction and by the company’s charter, but typical features include a board of directors or a supervisory board and an executive management team.

OAO is often contrasted with ZAO, a closed joint-stock company, where share transfers are restricted to a defined circle of shareholders and market access may be limited. The open nature of an OAO makes it suitable for public investment and capital markets participation, though not all AOAs are necessarily publicly listed on stock exchanges.

Regulatory status varies by country, but in Russia the OAO designation has largely been superseded for new formations by the term AO (aktaionernoe obshchestvo), with OAO persisting in legacy company names and some legal instruments. In practice, many former OAO entities have converted to AO, while some continue to operate under the historical designation. The term is most closely associated with corporate forms used in Russia and other former Soviet states rather than with a unified global standard.