What Is Joint Stock Company? Explain Its Characteristics?
Joint Stock Company. Joint Stock Company is a voluntary association of different persons created by law as a separate body for specific purposes. It possesses a common capital contributed by its members stop such capital being divided into transferable shares. The liability of each such member is limited to the face value of the shares he holds. LORD JUSTIC LINDELY defines. “A company is an artificial person created by law with a perpetual succession and a common seal. It has a legal entity separate from the persons composing it. It can sue and be sued in its own name. It is formed and controlled under the company ordinance or of the state. It is managed by the group of persons known as board of directors. This form of organization is very popular in the field of large scale production and distribution due to its greater benefits. Characteristics The following are the main characteristics of the joint stock company. 1. Legal Existence. Joint stock company is an artificial persons creat
