Joint Stock Company

2.  Definition
 Classification
According To Incorporation
According To Liability
According To No Of Members

3.  A joint-stock company (JSC) is a form of
company or joint venture involving two or
more individuals that own shares of stock in
the business. Certificates of ownership
("shares") are issued by the corporation in
return for each financial contribution, and the
shareholders are free to relocate their
ownership interest at any time by selling their
shares to others

4. 1. According To Incorporation
a) Chartered Company
b) Statutory Company
c) Registered Company
2. According To Liability
a) Limited by Share
b) Limited By Guarantee
c) Unlimited
3. According To No of Members
a) Private
b) Public

6.  A company which is created by the Royal
order is called chartered company. Its
powers, rights and functions are governed by
the charter
 For Example : East India Company, Chartered
Bank Of England

7.  A company which is formed by the order of
Governor General, President or Prime Minister or
by the Special act of parliament is called statutory
company. These companies are organized for the
object of social welfare business. Government
provides full protection to these companies.
These companies have a monopoly in their
business. The share holders have a limited
liability.
 For Example: State Bank Of Pakistan, National
Bank Of Pakistan

8.  Those companies which are formed under the
Companies Ordinance 1984 are called
registered companies. Registered company
has separate entity from its members.
 For Example: Adam Jee Industries Limited

10.  In this company the liability of each member
is limited to the amount of the shares which
he holds. It has two kinds :
◦ Private limited company
◦ Public limited company.

11.  In this company each member gives a
guarantee to contribute a specified amount
on its winding up.
 Liability of the shareholders is limited to that
guarantee which they have given.
 These type of companies are mostly formed
for Clubs to promote social welfare activities.

12.  The shareholders of the unlimited company
are liable to pay the debts and other
obligations of the business. So the liability of
the members is unlimited.
 It has separate legal entity
 Its share can be transferred easily
 It is managed by the board of directors
 It is registered under the Companies
Ordinance

14.  It can be formed at least by two persons but
total membership can not exceed more than
fifty.
 Neither it can issue the shares nor it can
transfer the shares.
 Company also uses the word limited with its
name.
 Liability of the share holders is also limited.

15.  At least seven members can form the public
limited company but there is no limit to the
maximum member.
 Company can sell the shares to the public.
 The shares are easily transferred. It can issue
the debentures to borrow the capital.