meaning and definition of joint stock company pdf

Meaning And Definition Of Joint Stock Company Pdf

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A Joint Stock Company may be defined as a company that issues stock and allows derived promotion trading making the stockholders legally responsible for the debts caused to the company.

Joint Stock Company

Joint-stock company , a forerunner of the modern corporation that was organized for undertakings requiring large amounts of capital. Money was raised by selling shares to investors, who became partners in the venture. One of the earliest joint-stock companies was the Virginia Company , founded in to colonize North America. By law, individual shareholders were not responsible for actions undertaken by the company, and, in terms of risk exposure, shareholders could lose only the amount of their initial investment. See also corporation. Joint-stock company Article Media Additional Info. Print Cite verified Cite.

Joint Stock Companies: Definition, Types, and Formation Procedures

Ankandhk is a passionate business student from Bangladesh. They are particularly interested in the different types of enterprises. A joint-stock company JSC is a form of company or joint venture involving two or more individuals that own shares of stock in the business. Certificates of ownership "shares" are issued by the corporation in return for each financial contribution, and the shareholders are free to relocate their ownership interest at any time by selling their shares to others. At present, company law the existence of a joint-stock company is often identical with incorporation i.

What is a joint stock company? What are their characteristic features? 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. The proportion of capital to which each member is entitled is his share and every member holding such share is called shareholders and the capital of the company is known as share capital.

What is a joint stock company? What are their characteristic features?

Everything you need to know about the features and characteristics of a joint stock company. A more comprehensive definition will, however, be one that indicates all the essential features of a company. As an attempt in this direction, a company may be defined as an artificial person being an association of natural persons recognised by law, with a distinctive name, a common seal, a common capital comprising transferable shares of fixed value carrying limited liability, and having a perpetual continuous, uninterrupted succession. Legal Formation 2.

Overview A sole trading and partnership business could not meet the requirement of the large-scale organization. Both of them have limited fund and unlimited liability. There is a lack of managerial ability in sole trading and partnership firm.

A company with transferable ownership interests and unlimited shareholder liability. 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.

Types of Join Stock Company

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    Legally, it is an artificial person and having a distinctive name and a common seal. Lord Justice Lindley of England has defined joint-stock company as “an.

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