A company is a creation of law and is called an artificial person. It exists only in the contemplation of law, and therefore, has no physical form. However, law grants it the right to act as a natural being — through a board of directors elected by the shareholders. A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to the continued existence of the company. Characteristics and features of a joint stock company Separate legal existence : A company has a distinct and separate legal entity, independent of its members. It means that the company can own property, make contracts, and file suits in it own name. joint-stock company. noun. an association of individuals in a business enterprise with transferable shares of stock, much like a corporation except that stockholders are liable for the debts of the business. A joint stock company has to function as per the provisions of the Companies Act. The accounts are to be audited by qualified auditors. Such accounts and exports are published for the information of all stakeholders. Regular and timely reports are to be submitted to the Government. Joint Stock Company. Definition. A company which has some features of a corporation and some features of a partnership. The company sells fully transferable stock, but all shareholders have unlimited liability.
A company is a creation of law and is called an artificial person. It exists only in the contemplation of law, and therefore, has no physical form. However, law grants it the right to act as a natural being — through a board of directors elected by the shareholders. A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.
A Joint Stock Company is voluntary association in which people contributes with capital in the forms of shares to carry on a certain type of business for earning profit”. Company operates in its own name under a common seal. It has separate body from its members. Below this post is all about the characteristics and features of joint stock company. You should aware of them all. A Joint Stock Company is a voluntary association of persons to carry on the business. It is an association of persons who contribute money which is called capital for some common purpose. These persons are members of the company. ADVERTISEMENTS: A careful analysis of the above mentioned definitions reveal the following important characteristic feature of a Joint Stock Company. Related posts: What advantages does a joint stock company enjoy over other forms of business organization? Brief notes on different Types of joint stock companies Short essay on joint stock companies What are the Advantages … A company is a creation of law and is called an artificial person. It exists only in the contemplation of law, and therefore, has no physical form. However, law grants it the right to act as a natural being — through a board of directors elected by the shareholders.
A joint stock company is a company whose stockholders have the same privileges and responsibilities as an unlimited partnership. The shares in a company are transferable and members can transfer their shares without the consent of other members of the company. The company is listed with the Stock Exchange and hence company’s shares are readily sold and purchased. As shares are freely transferable, a shareholder can convert his holding into cash. The joint stock company is an association of persons having a separate legal existence, perpetual succession, common seal, common capital etc. The joint stock company divides its capital into a large number of parts with each value where each part of capital is called share. The person who holds the share is called shareholders of the company. Features & Characteristics Of A Company. Incorporated association: A company comes into existence when it is registered under the Companies Act (or other equivalent act under the law). A company has to fulfil requirements in terms of documents (MOA, AOA), shareholders, directors, and share capital to be deemed as a legal association.
Characteristics and features of a joint stock company Separate legal existence : A company has a distinct and separate legal entity, independent of its members. It means that the company can own property, make contracts, and file suits in it own name. joint-stock company. noun. an association of individuals in a business enterprise with transferable shares of stock, much like a corporation except that stockholders are liable for the debts of the business.