Question

Prepare a case study on the features of joint stock company ? And answer should be one word

Answer 1

features :

1. Registration -  registration of joint stock company is compulsary under the Companies Act 1956 .

2. Limited Liability -  the liabilty of the members is only limited to their extent of share in the capital.

3. Perpetual Succession -  a company has continuous existence . the death , insolvency or incapacity of a member does not affect the exsistence of a company .

4. Common Seal -  being an artifical person , a company cannot sign. hence a common seal with the companys name on it is required.

5. Artificial Person -  a company is an artificial person created  by the law . it does not have a physical body

6. Separate Legal Entity -  a company can buy or sell assets in its own name .the company and its members are separate