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It is a company whose stock is owned jointly by the shareholders. It is an artificial person recognized by law, with a distinctive name, a common seal, a common capital comprising transferable shares of fixed value carrying limited liability and having a perpetual succession.
What is the characteristics of joint-stock company?
It has a separate legal entity apart from its members. A company acts independently of its members. The company is not bound by the acts of its members and members do not act as agents of the company. A person can own its shares and can be its creditor too.
Which feature of joint-stock company is referred to in this example?
Separate Legal Entity: Being an artificial person, a joint stock company has a personality and existence of its own that is independent of its investors. This means that a joint stock company can own property, enter into contracts and conduct any lawful business in its “own” name.
What is joint stock company in India?
A Joint stock company is an artificial person created by law, having separate legal. entity, with perpetual succession and a common seal. The companies are governed by the Indian Companies Act, 1956.
Which are the joint stock companies in India?
Some Major Ones Include:
- Tata Motors Limited.
- Reliance Industries Limited, owned by Mukesh D. Ambani, is a premier example of the joint-stock company in India.
- State Bank of India.
- Jindal Steel & Power Ltd.
- Grasim Industries Ltd.
- Oil & Natural Gas Ltd. (ONGC)
What is the importance of joint stock company?
The most important advantage of using a joint-stock company was having the organization to recruit investors and raise enough money to attempt to establish a colony. The Virginia Company, as highlighted above, was very successful in this respect.
Which of them is a feature of a joint stock company Mcq?
A joint stock company only exists in law and therefore, is considered as an artificial legal person. It has its own legal identity after its incorporation. In a joint stock company, the liability of the shareholders is limited to the value of the unpaid share capital in the company.
Who manages a joint-stock company?
The company is managed on behalf of the shareholders by a board of directors, elected at an annual general meeting.
How is a joint-stock company formed?
What is the Formation of a Joint Stock company? Formation of a company means the establishment of the business/company which includes promotion, incorporation, subscription of the capital, and after these steps, the final decision is taken by the promoter related to the starting of the business.
What is a joint stock company Colony?
Finally, a joint-stock colony (also known as a charter colony, or corporate colony) was a combined venture between investors in the hope of obtaining a return on their investment of funds in the colony. Today colonies are rare, but still exist as non-self-governing territories, as categorized by the United Nations.