needs & importance of joint stock company
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A company has unending life quite independent of the life of its members. The death, insolvency, or exit of any shareholder has no effect on the life of a company. “During the war all the members of one private company, while in general meeting, were killed by a bomb.
But the company survived; not even a hydrogen bomb could have destroyed it”. The common saying in this regard is “members may come, members may go, but the company goes on forever”. Law creates it and law alone can dissolve it. However, sole proprietorships and partnerships do not enjoy uninterrupted life. The proprietary business almost comes to an end if anything happens to the proprietor.
Even when it is passed on to the successors, they may not be competent to operate it. Partnership, for instance, comes to an end on the death, lunacy, or insolvency of a partner. A partner can also put an end to partnership by retirement.
Hope this helps you.
But the company survived; not even a hydrogen bomb could have destroyed it”. The common saying in this regard is “members may come, members may go, but the company goes on forever”. Law creates it and law alone can dissolve it. However, sole proprietorships and partnerships do not enjoy uninterrupted life. The proprietary business almost comes to an end if anything happens to the proprietor.
Even when it is passed on to the successors, they may not be competent to operate it. Partnership, for instance, comes to an end on the death, lunacy, or insolvency of a partner. A partner can also put an end to partnership by retirement.
Hope this helps you.
akshayaj2508:
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