Question

Write short answers for the following:
What are the characteristics or features of a Joint Stock Company?

Answer 1

Joint stock company has the following features of a company:-

1. Artificial person: A company is a creation of law and exists independent of its members. Like natural persons, a company can own property, incur debts, borrow money, enter into contracts, sue, and be sued.

2. Separate legal entity: From the day of its incorporation, a company acquires an identity, distinct from its members.

3. Control: The management and control of the affairs of the company is undertaken by the Board of Directors, which appoints the top management officials for running the business.

4. Common seal: The company being an artificial person acts through its Board of Directors. The Board of Directors enters into an agreement with others by indicating the company’s approval through a common seal.