SlideShare a Scribd company logo
FEATURES OF JOINT STOCK
COMPANY
Separate Legal Entity
• A company is compulsorily required to be registered under the
company’s act 1956. After registration, the company gets a
separate legal existence apart from its members.
Artificial Person
• A Company is considered as Artificial person because it cannot
breathe, eat, run and so on. But it can carry on business in its
own name, own property, enter in to contracts, sue and be sued.
Perpetual Succession
• As a result of its separate legal status, the death, insanity,
insolvency or imprisonment of members will not affect
existence of the company. Members may come and members
may go, but the company continues to exist.
Liability
• The liability of members of a company is limited to the extend
of amount paid on the shares held by them.
Risk Bearing
• The risk of losses in company is borne by all the share holders.
If any financial difficulties occur all share holders in a company
have to contribute to the debt to the extend of their shares.

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Features of joint stock company

  • 1. FEATURES OF JOINT STOCK COMPANY
  • 2. Separate Legal Entity • A company is compulsorily required to be registered under the company’s act 1956. After registration, the company gets a separate legal existence apart from its members.
  • 3. Artificial Person • A Company is considered as Artificial person because it cannot breathe, eat, run and so on. But it can carry on business in its own name, own property, enter in to contracts, sue and be sued.
  • 4. Perpetual Succession • As a result of its separate legal status, the death, insanity, insolvency or imprisonment of members will not affect existence of the company. Members may come and members may go, but the company continues to exist.
  • 5. Liability • The liability of members of a company is limited to the extend of amount paid on the shares held by them.
  • 6. Risk Bearing • The risk of losses in company is borne by all the share holders. If any financial difficulties occur all share holders in a company have to contribute to the debt to the extend of their shares.