Question

State whether the following statements are True or False:
(a) A joint stock company is separate legal entity.
(b) A company survives even if all its members die.
(c) A joint stock company is a voluntary association of persons.
(d) A joint stock company is less stable than a partnership.
(e) Registration of a joint stock company is optional.
(f) There can be no conflict of interest in a joint stock company.
(g) A company is an artificial legal person.

Answer 1

(a) True.

(b) True.

(c) False, It is not a voluntary association of persons and it has some legal agreements for it's members.

(d) False, A joint stock company is more stable due to separate legal entity.

(e) False, Registration of a joint stock company is compulsory.

(f) False, There can be conflict of interest among the members in a joint stock company.

(g) True.