JOINT STOCK COMPANY

Meaning of joint stock company.Types of joint stock company.Advantages of joint stock company.

Disadvantage of joint stock company.

Features of joint stock company.Conclusion .Source.

OVERVIEW OF SLIDE

"Joint stock company is a form of organization which is capable of mobilizing larger amount of capital with provision of limited liability for owners and affording professional management to conduct its business“

MEANING OF JOINTSTOCK CO.

joint stock co.

Chartered co.

Registered co.

Ltd by promise.

Ltd by share

Public ltd

Pvt. ltd

Statutory co.

 The companies that form by the order of the king of England are called the charter company. These companies were formed before 1844. For example, East India Company, Chartered Bank of England, the charter of the British South Africa Company, given by Queen Victoria (More information here

CHARTERED COMPANY

Companies that are formed by the order of the President, or by the Legislative Committee or by bill of Parliament are called Statutory Company. These Companies are operated by those laws. For example, municipal councils, universities, central banks and government regulators, Central Bank.

STATUTORY COMPANY

Companies that are formed under the prevailing law of the company are called the registered company. The corporation that has filed a registration statement with the SEC prior to releasing a new stock issue. It is two types

A)UNLIMITED CO-The liabilities of the shareholders of this company are unlimited

REGISTERD COMPANY

B) LIMITED COMPANY- The liabilities of the shareholders are limited. This liability of company can be two type-

I)BY GUARANTEEII)BY SHARE VALUE – The co limited by share can be two type-

a) Private Limited Company-where the number of shareholder ranges from two to fifty. The share of these companies can’t be traded in the stock market.

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b)Public Limited Company- where the number of shareholder ranges from seven to share limitation. The share of the public limited company is traded in the stock market.

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A)HUGE RESOURCE-A company can raise large amount of resources by issuing shares. In case of public company.

B)Limited liability- The liability of the shareholders is limited to the extent of the face value of the shares held by them or guarantee given by them.

C) Efficient management-A company can hire the services of professional manager for its functional areas because of its financial strength

ADVANTAGE OF JSC

D)Public confidence- A company submits required information to the Government and other authorities at regular intervals.

E) Scope for expansion-A company can generate huge financial resources by issuing shares and debentures to finance new projects.

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A)DIFFICULTY IN FORMATION-The formation of a joint stock company is very difficult, time taking and expensive as compared to any other form of organization.

B)DELAY IN DECISION MAKING-The Board of Directors of the company decides about the policies and strategies of the company. Certain decisions are taken by the shareholder

DISADVANTAGE OF JS

C) Lack of secrecy-Each and every business strategy is discussed in the meeting of the Board of Directors. The annual accounts are published and compliance to Government, Tax authorities etc. are made at regular intervals.

D)Fraudulent management-The possibility of starting a bogus company, collecting huge sums of money and subsequently bringing liquidation of the company is not ruled out. The promoters with an intention to defraud may indulge in such practices.

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A)An artificial person-The company enjoys all the rights as a citizen of a country would enjoy. It 'can own properties, enter into contracts.

B) Separate legal entity- The company is separate from the persons who own it. The company cannot be held responsible for any misdeeds of the members.

FEATURES OF JSC

C)Large capital -A Joint Stock Company can generate huge amount of money towards capital, because the number of persons contributing towards capital are more in number when compared to Sole Proprietorship or Partnership organization.

D)Common seal-The company, being an artificial being, cannot affix its signature on the documents on its own. The common seal is used in place of a signature

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E)Legal formation-The formation of a Joint Stock Company is governed by the rules and regulations laid down in the Companies Act, 1956.

F)Transferability of shares-The shares of a Joint Stock Company are easily transferable from one person to another, since it is a Public Limited Company

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A joint stock company is good for all like country, investor ,businessman .

Joint stock company engaged in corporate social responsibility its good for common people of the country.

A joint stock company deals in large scale so the natural resources can be utilized in proper manner.

CONCLUSION

1) WWW.WIKIPEDIA.COM 2) WWW.INVESTPEDIA.COM3)BOOK –BUSINESS ORGANIZATION

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