Write short note on features of Joint Stock company.
Answers
Feature of joint stock company are...
1)Separate legal existence - acc to this a company and its member are separate individual as the business is in own name so they have separate existence.
2)Artificial person - a company does not have a physical body like a human being. it is an artificial person created by law.
3) Registration - it is legally compulsory to get resister itself under the company act 1956 .
4) perpetual succession - a company is created by law and only law can bring an end to its existence the death and incapacity of any member do not affect the existence of company.
5) common seal - member of company can use common seal on behalf of company .
6) Transferability of share - the share of company can freely transferable by its member. a shareholder is free to withdrawn his membership from the company by selling his share.
7) Separation of ownership and control - the share holder elect their representative called director of company who manage and control the activity of company.
8) Limited liability - the libility of the company is limited to the extent of their share capital contribute in Company.
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