Features of joint stock company. Joint Stock Company: Example, Features, Types 2022-10-25
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An annotated bibliography is a list of sources that includes a summary and evaluation of each source. It is typically included in the introduction of a research paper and is used to provide a comprehensive overview of the sources that the paper is based on.
There are several different ways that an annotated bibliography can be organized, but in most cases, it is organized alphabetically by the author's last name. The annotated bibliography should include a citation for each source, followed by a brief summary and evaluation of the source.
The purpose of an annotated bibliography is to provide a brief overview of the main points and arguments of each source, as well as to evaluate the reliability and usefulness of the source for the research paper. It is important to carefully consider the relevance and reliability of each source, as the annotated bibliography serves as a critical evaluation of the research that has been conducted on a particular topic.
In general, the annotated bibliography should be included in the introduction of the research paper, immediately after the background information and before the main body of the paper. This placement helps to establish the credibility of the research by demonstrating the thoroughness of the research process and the care that has been taken in selecting and evaluating the sources used in the paper.
Overall, the annotated bibliography is an important part of any research paper, as it helps to establish the credibility and thoroughness of the research and provides a comprehensive overview of the sources that have been used in the paper.
What Is a Joint
But a sole trading concern comes to an end with the death of a sole trader, and in the case of partnership, death, retirement, or insolvency of any member of the partnership would dissolve the firm. Thus, owners and managers are different people. It is, therefore, called an artificial person. Transferability of shares:A public limited company can enjoy the benefits of the transferability of shares. It is known as an artificial person and has its own rights. First, on the basis of profit earned by the company.
Separation of Ownership and Management: A joint stock company has a large number of shareholders at any point of time. However, in some cases, there can be some restrictions on the free transferability of shares. Restricted action: A company cannot go beyond the powers mentioned in the abject clause of the Memorandum of Association. Again, as the shares are freely transferred by selling it in the stock market, this works as an added attraction to the investors. A shareholder being an entity distinct from that of a company can sue the company and be sued by it whereas a partnership organization or a sole proprietor has no such legal existence in the eye of the law, separately from the persons composing it.
Company operates in its own name under a common seal. ADVERTISEMENTS: A joint stock company is a voluntary association formed for the purpose of carrying on some business. It is because of these physical disabilities that a company is called an artificial person. Lack of Prompt Decision: The prompt decisions which are possible in case of other organizations such as sole-trading organization and partnership are not possible in a company form of organization. A company is an artificial person recognized by law, with a distinctive name, a common seal, a common capital comprising transferable shares of fixed value, carrying limited liability, and having a perpetual succession.
There is nobody who knows everybody else in the company. Separation of Ownership from Management: In a company organisation ownership rests with the shareholders, whereas management of its affairs is in the hands of Board of Directors. Chartered Company is a company that is incorporated by the king or the head of the state. The existence of stock exchanges where shares and debentures are sold and purchased has facilitated as good as cash as they can be sold at any time and there is an added attraction to the investors. This is so because it is not possible for a large body of shareholders spread over a wide area to meet every now and then for the business of the company.
Joint Stock Company: Types, Features & Benefits Explained
The members can be asked to contribute to the loss only to the extent of the unpaid amount of share held by them. The law has, therefore, provided for the use of a common seal, with the name of the company engraved on it, as substitute for its signatories. Distinguishing Features of Joint Stock Company: ADVERTISEMENTS: Some of the distinguishing features of a company are the following: 1. Features of a Joint Stock Company — Artificial Legal Person, Compulsory Incorporation, Perpetual Succession, Common Seal, Distinct Legal Entity and a Few Others 1. Wealth Wealth refers to the overall value of assets, including tangible, intangible, and financial, accumulated by an individual, business, organization, or nation. This premium is then credited to the share premium account of the company. The company can only be dissolved by the operation of law.
10 Important Characteristics of a Joint Stock Company
A joint stock company in Pakistan is incorporated and regulated under the Companies Ordinance, 1984. Hence there is no chance for fraud and misconduct. The life of the company is independent of the lives of its members. It is created born through an act of law and is wound up dies through an act of law. Registration of a company is considered to be a time consuming, expensive and complicated process.
What are the Characteristics of Joint Stock Company?
Accountability: A joint stock company has to function as per the provisions of the Companies Act. In this case, one Salomon converted his leather business from a sole proprietorship into a company, taking 20,000 shares for himself, and allotting one share each to his wife and daughter. Again, as the affairs of the company are published, and as the companies are well regulated and controlled by the State, the public has great confidence in the company form of organization. Limited Liability: ADVERTISEMENTS: The liability of a member of a company is restricted to the number of shares purchased by him. It has a personality of its own only in the eyes of law—which cannot be seen.
There is, thus, separation of ownership from management which permits the use of professional talent to run the show in a democratic and independent manner. Many times dishonest persons at the top succeed in cleverly misleading and cheating the shareholders. Statutory Regulation: A company has to comply with numerous and varied statutory requirements. Transferability of Shares: One special feature of company is that shares are freely transferable from one person to another without the knowledge of the shareholders. Salomon also received mortgage debentures in part payment by the company for the business. Common Seal: Since a company is an artificial person in the eyes of law, it must have its own common seal on which its name is engraved in a special style.
8 Important Characteristics of a Joint Stock Company
Normally, as the directors have a great stake in the business, in the interest of the company, and in their own interest, they have to be very efficient. The creditors of the company are the creditors of the corporate body and they cannot proceed against the members personally. The shares of a Joint Stock Company are simply transferable from one person to another, since it is a Public Limited Company. Features and Characteristics of a Joint Stock Company: Legal Formation, Artificial Person, Risk Bearing and a Few Others Features of a Joint Stock Company — 8 Distinctive Features: Legal Formation, Artificial Person, Separate Legal Entity, Common Seal, Perpetual Existence and a Few Others The distinctive features of a company may be listed thus: Feature i. Stability Perpetual Succession and having a separate legal identity makes a company stable as it offers continuous existence. Transferability of Shares: The shares of a company can be transferred by its members. First the tax is levied on the profits of the company and secondly, the shareholders pay tax on the dividends received.