Question

explain any four features of joint stock company

Answer 1

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1. An artificial person: -

The company enjoys all the rights as a citizen of a country would enjoy. It 'can own properties, enter into contracts etc.

2. Legal formation: -

The formation of a Joint Stock Company is governed by the rules and regulations laid down in the Companies Act, 1956.

3. Voluntary organisation: -

It is formed by members voluntarily joining the organisation and contributing money or money's worth for the business.

4. Separate legal entity: -

The Company has a separate legal existence. The owners are different from the people who manage the business. The management is however headed by owners who are elected directors. The company is separate from the persons who own it. The company cannot be held responsible for any misdeeds of the members.

5. Perpetual succession: -

Unlike Sole proprietorship and Partnership, the Company has continuous existence. The continuity of the business is not affected by the death, insolvency or insanity of any member. "Men may come and men may go, but a company will go until it is wound up."

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Answer 2

Answer:

A joint stock company is a voluntary association formed for the purpose of carrying on some business. ... The important features of a joint stock company are the following – an artificial person created by law, with a distinctive name, a common seal, a common capital with limited liability, and with a perpetual succession

Explanation:

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