Comapnies act 1. 95. Understanding the joint stock companies. In a partnership, there can be a maximum of 2. Because. of this limit, the amount of capital that can be generated is limited. To overcome these problems a public or a private company may. Private and public companies are much better investments. Limited liability”. This means that if. Rs. 1. 00. 0/- in a particular company, and the. Registrar of Joint Stock Companies and Firms . 7.1 S TAGES IN THE FORMATION OF A JOINT STOCK COMPANY. 10 important Features of joint stock companies. A Joint Stock Company can generate huge amount of money towards capital. The company, being an artificial. JOINT STOCK COMPANIES; JOINT STOCK COMPANY IN; JOINT STOCK COMPANY SWITZERLAND; JOINT STOCK COMPANY PPT; TYPES OF JOINT STOCK COMPANY. Joint stock companies have democratic management and control. COOPERATIVE SOCIETIES AND JOINT STOCK COMPANIES. Types of capital Each company has 2 types of capital Share capital Loan capital Meaning of Share The capital of a company is divided into a number of equal parts. Each part is called a Share. Disadvantages of Joint Stock Company Following are the main disadvantages of Joint stock company. This type of business organization cannot performs its function freely. Because it has to submit various reports. To pay of the debt, the investors property, bank accounts. The major disadvantage of Private and Public companies, is. They are. also closely regulated by the government. So what are Public or Private companies? These companies are also know as “joint stock. The companies in India are governed by the Indian. Companies Act, 1. The Act defines a company as an artificial person. What this means is that, the company “is. The investors put in money and. But the company is treated as a virtual person. The. company is treated as a person who is different from it’s. The company has an identity of it’s own. If some. one sues the company, he does not sue the investors, he sues the. To understand the concept of joint stock (private and public. Legal formation: No single individual or a group of individuals can start a business and. A joint stock company can come into. Indian Companies Act, 1. Artificial person: Just like an individual takes birth, grows. However, it is called an. Separate legal entity: Being an artificial person, a joint stock company has its own separate. This means that a. The. shareholders are “not” the owners of the property. Joint Stock Companies performed by OAO “LUKOIL” in 2011. Open Joint Stock Company “Oil company “LUKOIL”. The depositary receipts issued on Company shares are traded on the stock exchanges in London, Frankfurt.Also, the shareholders cannot be held responsible. Common seal: A joint stock company has a “seal”, which is used. It. is called a common seal as it can be used by any officer at any level. Any document, on. For example, a purchase manager may enter into a contract for. Once the contract paper is sealed. The purchase. manager may leave the company or may be removed from his job or may. Perpetual existence: A joint stock company continues to exist as long as it fulfills the. It is not affected by the death, lunacy. For. example, in case of a private limited company having four members, if. It will continue to exist. The. shares of the company will be transferred to the legal heirs of the. Limited liability: In a joint stock company, the liability of a member is limited to the. While repaying debts, for example, if a person. Rs. 1. 0,0. 00 then only this amount that he has invested. That is, even if there is. Rs. 1. 0,0. 00. Democratic management: Joint stock companies have democratic management and control. Since in. joint stock companies there are thousands and thousands of investors. Normally, the investors elect representatives from among. There are some special. Public and Private limited companies that must be. There are given below. Special charecerestics of Private Limited Comapnies. These companies can be formed by at least two individuals. Rupees 1 lakh. As per the Companies Act, 1. The shares allotted to it’s members are also not. These companies are not allowed to raise money from the. They are required to use “Private Limited”. The examples of such companies are Combined Marketing Services. Private Limited, Indian Publishers and Distributors Private Limited etc. Special charectersetics of Public Lmited Companies. A minimum of seven members are required to form a public. It must have minimum paid- up capital of Rs 5 lakhs. There is no restriction on maximum number of members. The shares allotted to the members are freely transferable. These companies can raise funds from general public through. These companies are required to write either ? Table Of Contents. How to. incorporate? Understanding. Sole Proprietorships - Advantages of. Sole Proprietorships - . Disadvantages of Sole Proprietorships - What. Sole Proprietorships?
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