A Company that has a separate legal existence, which is different from that of its members. A joint stock company is treated as an artificial legal person. The ownership of a company is in the form of capital contributed by the shareholders and thus this capital is broken down to smaller units contributed among shareholders in the that which is easy transferable. This company has a perpetual succession, it can be understood as the life of company does not come to an end with the death of the share holders, but hence, continues to exist even after the death of shareholders. The company as already mentioned above specifies it as an artificial legal person and perhaps uses concerned seal as signature. There is a huge amount of capital Inflow as the management is looked after by the professionals and it is said to be more efficient. The liability of the members is limited to the face value of shares or to the extent of the amount guaranteed by them. Thus the joint stock company is a voluntary association of persons, formation of company is expensive and lot of legal formalities to be fulfilled. |