what are the aims and objectives of a joint stock company.
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➡️Joint stock company refers to the association of people by contributing capital for some common purpose with aim of earning profit.✔️
➡️Features of joint stock company are:-
1. Separate legal entity: Company is a separate legal entity, it can own property, enter into contracts, file suit etc. in its own name.✔️
2.Perpetual succession- Entry and exit of members do not affect status of company. It is created by law and can be closed lawfully. Members may come and go but company goes on until wound up.✔️
3. Limited liability- The liability of members is limited to amount not paid on shares. Members can not be held liable for debts of the company.✔️
4. Transferability of shares- Shares of company can be easily transferred from one member to any other person with few formalities.✔️
5.Seperation of ownership and control- Shareholders are owners of the company and they do not take part in management of company, the affairs of company are managed by Board of directors elected by members.✔️
➡️Features of joint stock company are:-
1. Separate legal entity: Company is a separate legal entity, it can own property, enter into contracts, file suit etc. in its own name.✔️
2.Perpetual succession- Entry and exit of members do not affect status of company. It is created by law and can be closed lawfully. Members may come and go but company goes on until wound up.✔️
3. Limited liability- The liability of members is limited to amount not paid on shares. Members can not be held liable for debts of the company.✔️
4. Transferability of shares- Shares of company can be easily transferred from one member to any other person with few formalities.✔️
5.Seperation of ownership and control- Shareholders are owners of the company and they do not take part in management of company, the affairs of company are managed by Board of directors elected by members.✔️
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