NME - General Commercial Knowledge

  Unit - 4 Management of Joint Stock Companies Directors             Directors in a joint stock company are elected by shareholders to provide strategic guidance and govern the company on their behalf. The board of directors sets company policy, appoints top management like the CEO, oversees day-to-day operations, and ensures the company acts legally and ethically to serve shareholder interests. They are the highest governing authority, holding a fiduciary duty to manage company assets for the company's benefit and ensure the company is managed effectively and legally.  Roles and responsibilities of directors Strategic direction : Determining and monitoring the company's strategic policies and objectives. Management oversight : Appointing and supervising senior management, such as the CEO, who then runs the company's daily operations. Governance : Ensuring the company operates lega...

  Unit - 3  Joint Stock Company Features of a Joint Stock Company v Separate legal entity:   It is a legal entity separate from its owners, meaning it can own property, enter into contracts, and be sued or sue in its own name.  v Limited liability:   A shareholder's liability for the company's debts is limited to the amount of their investment in the company.  v Perpetual existence:   The company's existence is not affected by changes in its ownership, such as the death or sale of shares by a shareholder. It continues to exist until it is legally dissolved.  v Transferable shares:   Shares can be freely bought and sold, either on a public stock exchange or between private parties, allowing for easy transfer of ownership.  v Capital raising:   The structure is ideal for raising large amounts of capital from many investors by selling shares.  v Management:   A board of directors, elected by the shareholders, is responsi...