What is Joint Stock Company?
A Joint-Stock Company is a business entity which is owned by shareholders. Each shareholder owns the portion of the company in proportion to his or her ownership of the company's shares (certificates of ownership). This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company. An association engaged in a business for profit with ownership interests represented by shares of stock. A Joint Stock Company is financed with capital invested by the members or stockholders who receive transferable shares, or stock. It is under the control of certain selected managers called directors. A Joint Stock Company is a form of partnership, possessing the element of personal liability where each member remains financially responsible for the acts of the company. It is not a legal entity separate from its stockholders. A Joint Stock Company is similar to a corporation in that both are characterized by perpetual succession where a member is allowed to freely transfer stock and introduce a stranger in the membership. The transfer has no effect on the continuation of the organization since both a joint stock company and a corporation act through a central management, board of directors, trustees, or governors. Individual stockholders have no authority to act on behalf of the company or its members.
There’s some authors definition about Joint Stock Company.
A Business enterprise characterized by its separate legal existence and the sharing of ownership between shareholders, whose liability is limited, is called a Joint Stock Company.
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.”
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