Write short answer of the following.
State features of Joint Stock Company.
State features of Joint Stock Company.
The following are the features of a joint stock company:
i. Artificial person: Unlike human beings, a company, is an artificial person. It cannot sign its documents, negotiate with its customers and breathe and talk.
ii. Separate legal entity: It implies that a company is created as a separate legal entity by the law. A company can carry out a business under its name and own assets.
iii. Formation: The formation of a company requires the fulfilment of a set of legal formalities. This makes the formation of a company expensive and time-consuming.
iv. Perpetual succession: A company, being a separate legal entity, cannot come to an end by itself; it continues to operate even after the death of its members.
v. Limited liability: The liability of shareholders is limited to the amount of capital invested by them in the business.
vi. Common seal: The board of directors uses the common seal as an official signature of the company to validate official documents.
i. Artificial person: Unlike human beings, a company, is an artificial person. It cannot sign its documents, negotiate with its customers and breathe and talk.
ii. Separate legal entity: It implies that a company is created as a separate legal entity by the law. A company can carry out a business under its name and own assets.
iii. Formation: The formation of a company requires the fulfilment of a set of legal formalities. This makes the formation of a company expensive and time-consuming.
iv. Perpetual succession: A company, being a separate legal entity, cannot come to an end by itself; it continues to operate even after the death of its members.
v. Limited liability: The liability of shareholders is limited to the amount of capital invested by them in the business.
vi. Common seal: The board of directors uses the common seal as an official signature of the company to validate official documents.
