What is the Joint Stock Company?

Joint Stock Company is a autonomous affiliation of altered bodies created by law as a abstracted physique for specific purposes. It possesses a accepted basal contributed by its associates such basal getting disconnected into communicable shares. The accountability of anniversary such affiliate is bound to the face amount of the shares he holds. LORD JUSTICE LINDELY defines. "A aggregation is an bogus being created by law with a abiding assumption and a accepted seal". It has a acknowledged entity, abstracted from the being basal it. It can sue and be sued In its own name.

It is formed and controlled beneath the Aggregation Authorization or of the State. It is managed by the accumulation of bodies accepted as Board of Directors. This anatomy of alignment is absolute accepted in the acreage of ample calibration assembly and administration due to its greater benefits.

Characteristics

The afterward are the basic characteristics of the collective banal company:

I. Acknowledged Existence

Joint Banal Aggregation is an Bogus Being created by law. As it has abstracted acknowledged actuality afar from its members, it can acquirement the acreage or alteration the appellation of acreage or sue in a cloister of law in its own name. In our country, it is organized and supervised beneath the aggregation authorization 1984.

2. Bound Liability

The accountability of the actor is bound to the contributed amount of the shares he holds. Private assets of the associates are not accountable to achieve the business obligations. This is a arresting characteristic affection from added forms of business organization.

3. Amount of Members

There are ample numbers of associates in the collective banal company. In case of Accessible aggregation minimum amount of associates is seven and there is no brake for the best amount of members. In case of Private Company, minimum amount of associates is two and best is fifty.

4. Transferability of Shares

The allotment of the accessible aggregation is transferable. This blazon of allotment may calmly be purchased or awash in the banal barter market. But associates of affiliation cannot advisedly alteration their shares to addition person.

5. Object

The basal of the accumulation of the collective banal aggregation is to acquire profit. Whole accumulation is not broadcast a part of the shareholders but some allocation of accumulation is transferred to Reserve Fund. So that it may be acclimated at the time of emergency.

6. Management

Its administration is conducted by the Board of Directors. But the shareholders who are the absolute owners of the aggregation are not accustomed to participate anon in the management. So there is break of buying from control.

7. Long Life

It enjoys connected existence. The afterlife or retirement of any affiliate cannot affect the active activity of company. Its activity is afar from its members. Its business continues until it is anguish up by its associates or creditors so it is alleged abiding succession.

8. Larger Business

As there is no absolute to the best amount of shareholders in case of Accessible Company, basal may be added and ample business may be commenced. But it is not accessible in added anatomy of alignment due to abridgement of capital.

9. Trade Agreement

As collective banal aggregation enjoys abstracted actuality so it can accompany the acceding with added close in its own name.

10. Changing Attributes of Business

In the partnership, the attributes of business may calmly be afflicted with alternate accord of partners. But article article of the Memorandum of Affiliation which aswell describes the attributes of business may not be afflicted except the sanction of the court.

11. Chances of Increasing Funds

There are abounding sources by which business funds and basal may be aloft in the Accessible Company. It increases its basal by affairs its debentures, shares, added balance and by absorb saving. But these sources are not accessible in partnership.

12. Loans in its own name

Company can accept loans in its own name which are payable by the aggregation itself. But in the partnership, the loans are acquired by ally in their own claimed liability.

13. Abundant Rules

Its activities are controlled by abounding axial or bigoted departments. There are abundant rules which accept to accept to be agitated into aftereffect by the company. It has to analysis its accounts and to abide the assorted letters to Registrar office. It appropriately cannot accomplish advisedly after any interference.