Question

Precautions to be taken while opening a joint stock company account

Answer 1

Explanation:

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Answer 2

A Joint-stock Company is a business which is owned by its investors, with every investor owning a share established on the amount of stock purchased.

Precautions that are to be taken while opening a joint stock company account are

• While opening a joint account all the individuals who are concerned with the account should sign the application form.
• The critical forms should be filled up and signed to determine how the account is to be operated.
• The form should be signed in which all the matters related to who is authorised on all matters comprising cheques, bills, securities, advances etc are given.
• Joint holders may assign a person if they so wish.
• Proper overture of the customer is important.
• The manager should ascertain whether the new customer is a person with honesty and stature to be a "desirable customer", to open the Account.
• The bank manager may make enquiries from considerations given by the customer or banks about the dignity of the customer.

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