This document discusses the key features of a joint stock company. It notes that a joint stock company is a voluntary association of persons formed for carrying out business activities with the motive of earning profit. It is governed by The Companies Act of 1956. Some key points made are that a company is an artificial person with separate legal entity and perpetual succession. It raises capital through the issuance of shares to shareholders, who are the owners of the company. The managing body is the Board of Directors, who are elected by shareholders. The document then lists and describes eight features of a joint stock company.

1. Ranjini N
Roll No : 04
Commerce Option
ZMCTE Cherkala

3.  Voluntary association of persons
 formed for carrying out business activities
 with the motive of earning profit
 Governed under The Companies Act, 1956
 Company is a artificial person
 Separate legal entity
 Perpetual succession
 Common seal

4. The capital of the company is divided
into smaller parts, called SHARES
Capital is raised through the issue of
shares

5. The person who purchase the share is called
share holders
Share holders are the owners of the company

6. The managing body is called Board of
Directors
Board of Directors are elected by the share
holders

7. Features of Joint Stock Company
1. Artificial person
• A company can carry on business in its own
name, own property, lend or borrow money etc
• A company can legally behave like a human
being but it is not actually a person.

8. 2. Separate legal entity
A company can acquire its own identity
distinct from its members
Features of Joint Stock Company

9. 3. Formation
A company must be registered under the
companies Act
Formation of a company involves
lengthy and complicated procedure
Features of Joint Stock Company

10. 4. Perpetual succession
The existence of company is not effected by the
death, insolvency or change of ownership through
sale of shares by shareholders.
Features of Joint Stock Company

11. 5. Control
The management and control of the affairs of the
company is undertaken by the Board of Directors
Features of Joint Stock Company

12. 6. Liability
The liability of the member is limited to the capital
contributed by them
Features of Joint Stock Company

13. 7. Common seal
A common seal is used for company’s approval
for entering into a agreement
Features of Joint Stock Company

14. 8. Risk bearing
The risk of the losses in a company is borne
by all the share holders
Features of Joint Stock Company