Joint Stock Company
Joint Stock Company
Company
A company is an artificial person created by law, having a separate legal entity, with a perpetual succession and a common seal. It is an association of individuals for the purpose of earning profit. It has a capital divided into a number of shares, of which each member possesses one or more shares and which are transferable by its owners.
Joint Stock Company has been defined by many eminent authors, jurists and institutions. Some of these definitions are given below –
According to L.H.Haney – “A company is an artificial person created by law, having a separate legal entity, with a perpetual succession and a common seal.”
According to Company Act 1994 – “Company means a company formed and registered under this Act or any existing company.” [Section 2(1.c)]
According to Chief Justice Marshall – “A company is an artificial being invisible, intangible and existing only in the eyes of law.”
The system of joint stock organization is very useful for large undertakings for which large capital is required. It is an incorporated association created by law, having distinctive name, a common seal, perpetual succession, limited liability etc. formed to carry on business for profit.
Characteristics of Joint Stock Company
The most distinguishing characteristics of a joint stock company can be stated as follows –
1. Incorporated association : A company is an incorporated association. It comes into existence only after registration under the Companies Act.
2. Voluntary association : A company is an association of many persons on a voluntary basis. So, a company is formed by the choice and consent of the members.
3. Artificial legal person : A company has a legal personality and as such it is regarded by law as an artificial legal person. A company has the right to acquire and dispose of the property.
4. Separate legal entity : A company has a legal entity distinct from its members. It has an independent
Company
A company is an artificial person created by law, having a separate legal entity, with a perpetual succession and a common seal. It is an association of individuals for the purpose of earning profit. It has a capital divided into a number of shares, of which each member possesses one or more shares and which are transferable by its owners.
Joint Stock Company has been defined by many eminent authors, jurists and institutions. Some of these definitions are given below –
According to L.H.Haney – “A company is an artificial person created by law, having a separate legal entity, with a perpetual succession and a common seal.”
According to Company Act 1994 – “Company means a company formed and registered under this Act or any existing company.” [Section 2(1.c)]
According to Chief Justice Marshall – “A company is an artificial being invisible, intangible and existing only in the eyes of law.”
The system of joint stock organization is very useful for large undertakings for which large capital is required. It is an incorporated association created by law, having distinctive name, a common seal, perpetual succession, limited liability etc. formed to carry on business for profit.
Characteristics of Joint Stock Company
The most distinguishing characteristics of a joint stock company can be stated as follows –
1. Incorporated association : A company is an incorporated association. It comes into existence only after registration under the Companies Act.
2. Voluntary association : A company is an association of many persons on a voluntary basis. So, a company is formed by the choice and consent of the members.
3. Artificial legal person : A company has a legal personality and as such it is regarded by law as an artificial legal person. A company has the right to acquire and dispose of the property.
4. Separate legal entity : A company has a legal entity distinct from its members. It has an independent