Joint Stock Company -

         A joint stock company is a company whose capital is divided into shares and the liability of whose shareholders is limited to the par value of the shares respectively held by them. in simple words, A company form of business organization is known as a Joint Stock Company. It is a voluntary association of persons who generally contribute capital to carry on a particular type of business, which is established by law and can be dissolved only by law. The members of a joint stock company must not be less than three. A joint stock company can be both "Private Limited" as well as "Public limited company".

Characteristics of Joint Stock Company -

Characteristics of joint stock company are as follows

1) Creation of Law / Legal Formation - A joint stock company is a creation of law.A joint stock company comes into existence only when it has been registered after completion of all formalities required by the Indian Companies Act, 1956.

2) Artificial Person - A joint stock company is an artificial person

3) Separate Legal Entity - A Joint stock company has a legal entity quite distinct from its members

4) Common Seal - A joint stock company has a seal, which is used while dealing with others or entering into contracts with outsiders. It is called a common seal as it can be used by any officer at any level of the organization working on behalf of the company.

5) Perpetual Existence - A joint stock company enjoys perpetual succession.

6) Voluntary Association - A joint stock company is a voluntary association of person to earn profits

7) Limited Liability - In a joint stock company, the liability of a member is limited to the extent of the value of shares held by him.

See also... 

When a Private Company becomes a Public Company


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