What is Joint Stock Company?
An association of different individuals formed to carry out business activities is known as a joint stock company. This form of organization has an independent legal status from its members. Basically, a joint stock company is an artificial individual with a separate legal entity, common seal, and perpetual succession. The Joint Stock Company form of organization is governed by the Companies Act, 2013. The shareholders of the company are its owners; however, the Board of Directors is elected by the shareholders and is the chief managing body of the company. Usually, the shareholders or the owners of the company have indirect control over its operations.
Joint Stock Company is meant as an association of many persons who contribute money or money’s worth to a common stock and employ it for some common purpose. – Justice Lindley
A Joint Stock Company is an artificial person, invisible, intangible and existing only in the eyes of law. – Chief Justice Marshall
Table of Content
- Features of Joint Stock Company
- Types of Companies
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