Joint stock company

elaborately explained about types of joint stock companies

1. A PRESENTATION ON JOINT STOCK COMPANY Presented By: Akash bharadwaj 160213732002 Krishnarao 160213732014

2. DEFINATION The limitations of sole-proprietorship and partnership forms of ownership gave birth to joint stock company form of organisation. Two important limitations of earlier form of organisation were inadequacy of funds and unlimited liability. The earlier form of organisation could not meet the increasing demand for funds of organisation. The other limitation which hampered the growth of business was the unlimited liability of owners. A joint stock company(JSC) is a company whose capital is divided into shares and the liability of whose shareholders is limited to the par value of the shares respectively held by them.

3. According to incorporation Chartered companies Registered companies Statutory companies

4. ACCORDING TO LIABILITY COMPANIES LIMITED BY SHARES COMPANIES LIMITED BY GUARANTEE UNLIMITED COMPANIES

5. According to transferability of shares PRIVATE LIMITED Members 2-50 It must have at least two director The shares are not freely transferable It can start the business after the receipt of certificate of incorporation The directors need not hold qualification share There is no restriction on the number of directorship Two members present in the meeting is a quorum at general meeting PUBLIC LIMITED minimum 7-maximum unlimited It must have at least three directors Shares are freely transferable It requires trading certificate for starting business The directors have to purchase some qualification shares to become the director A director cannot be a director of more than 20 companies Five members present in the meetings is a quorum at general meeting.

6. MERITS OF JOINT STOCK COMPANY 1. ACCUMULATION OF LARGE RESOURCES 2. LIMITED LIABILITY 3. CONTINUITY IN EXISTENCE 4. EFFICIENT MANAGEMENT 5. ECONOMIES OF LARGE SCALE PRODUCTION 6. TRANSFERABILITY OF SHARES 7. SOCIAL BENEFITS

7. DEMERITS OF JOINT STOCK COMPANY 1 DIFFICULTY IN FORMATION 2 SEPARATION OF OWNERSHIP AND MANAGEMENT 3 DOUBLE TAXATION 4 EXCESSIVE GOVERNAMENTAL CONTROL 5 CONTROL BY BOARD OF DIRECTORS 6 LACK OF SECRECY 7 DELAY IN DECISION MAKING

8. procedure of Formation of a Joint Stock Company Planning Feasibility analysis Naming of the company Collecting Registration Form and Filling it up Preparing Documents and Submitting for Registration Obtaining Certificate of Commencement

9. Examples of Joint Stock Companies in India.

10. Thank you for listening…