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Q.61.Long answer type question.Define Joint Stock Company and explain its features |
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Answer» Definition Of Joint Stock Company :-A joint stock company is an artificial person recognized by law with a distinctive name, a common seal a common capital comprising transferable carrying limited liability and having a perpetual succession. Following are the important feature of joint stock company : 1. Separate Legal Existence :-joint stock company has separated entity from its members. It can sue in a court of law in its own name. 2. Long Life :-A joint stock company has a long life as compared to the other forms of business organization. 3. Distribution of Profit :-The basic aim of the joint stock company is to earn profit. 4. Limited Liability :-The liability of the share holders is limited to the extent to the face value of the shares they hold 5. Number of the Members :-In case of private company minimum members should be two and maximum fifty. While in a public company minimum member should be seven . |
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