DIGITAL ALBUM OF

JOINT STOCK
COMPNY

PRESENTATION BY SISIRA K P
 CONTENT
1 Meaning & Defenition of
Company

2 Features of Joint stock

Company
3 Merits & Demerits
of companies
4 Types of company
 1

Meaning & Defenition of

joint stock company
 1
JOINT STOCK COMPANY
Meaning

A company may be defined as a

voluntary association of persons
having a separate legal entity,
with perpetual succession
and a common seal.
Definition

Definition by Prof Honey. “Joint

Stock Company is a voluntary
association of individual for profit,
having a capital divided into
transferable shares, the ownership
of which is the condition
of membership. "
 2

FEATURES OF
JOINT STOCK COMPANY
 FEATURES OF JOINT STOCK COMPANY
1 INCORPORATED
ASSOCIATION
2 SEPARATE LEGAL
ENTITY
3 FORMATION
2 PERPETUAL SUCCESSION
4
5 CONTROL

6 LIABILITY

7 COMMON SEAL
8 TRANSFERABILITY OF SHARES
 1 INCORPORATED
ASSOCIATION
A company is an incorporated association,
i.e. Registration of a company is compulsory
COMPAN
Y 36% under the Indian Companies Act, 1956.

24% 2 SEPARATE LEGAL

ENTITY
A company is an artificial person
created by law. Company has a separate
legal entity apart from its members. It
can enter into contracts, own property,
sue and be sued, borrow and lend
money etc.
 3 FORMATION
The formation of a company is a
time consuming, expensive and
COMPAN
Y 36% complicated process.
24% 4 PERPETUAL SUCCESSION
A company has a continuous
existence. Its existence not affected
by death, insolvency or insanity of
shareholders. Members may come and
go, but the company continues to
exist.
5 CONTROL
The management and control of the
affairs of the company is in the
hands of Board of directors who are
elected the representatives of the
shareholders.
6 LIABILITY
A company has a continuous
existence. Its existence not affected
by death, insolvency or insanity of
shareholders. Members may come
and go, but the company continues to
exist.
7 COMMON
SEAL
The Company being an artificial
person acts through its Board of
Directors.
All documents issued by the company
must be authenticated by the
8company seal.
TRANSFERABILITY OF
SHARES
Shares of a joint stock
company are freely
transferable except in case of a
private company.
 3

MERITS & DEMERITS OF

JOINT STOCK COMPANY
 3
MERITS OF JOINT STOCK COMPANY

Limited Transferability Perpetual Scope for

liability of shares existence expansion

Professional
Public
management
confidence
 3
DEMERITS OF JOINT STOCK COMPANY

DIFFICULT IN LACK OF IMPERSONAL NUMEROUS

FORMATION SECRECY WORK REGULATIONS

DELAY IN
OLIGRACHIC
DECISION CONFLICT IN LACK OF
MANAGEMENT
MAKING INTEREST MOTIVATION
 4

TYPES OF COMPANY
 4

TYPES OF COMPANY
A company can be either a private
or a public company.

1) Private Company

2) Public
Company
 PRIVATE COMPANY
A private company means a company which:

1) Restricts the right of members to transfer its

shares
2)
Has a minimum of 2 and a maximum of 200
3) members

4 Does not invite public to subscribe to its share

) capital
 means a company which is not
PUBLIC COMPANY a private company.
As per the Indian Companies Act, a public
company is one which:

1)01Has a minimum paid-up capital of Rs. 5 lakhs

2) Has a minimum of 7 members and no limit on maximu

members

3) Can transfer its shares

Can invite the public to subscribe to its shares.
* A private company which is a Enter title here
subsidiary of
a public company is also treated as a
public company. Click here to add content of
the text ， and briefly
explain your point of view

* A public company’must use the word

limited after its name.

* It is necessary for a private company to

use the word private limited after its
name.
THANK YOU