NME Unit -3 Joint Stock Company Features

 

Unit - 3 

Joint Stock Company

Features of a Joint Stock Company

vSeparate 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. 

vLimited liability: A shareholder's liability for the company's debts is limited to the amount of their investment in the company. 

vPerpetual 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. 

vTransferable shares: Shares can be freely bought and sold, either on a public stock exchange or between private parties, allowing for easy transfer of ownership. 

vCapital raising: The structure is ideal for raising large amounts of capital from many investors by selling shares. 

vManagement: A board of directors, elected by the shareholders, is responsible for the management and oversight of the company's operations. 

  vExamples: Global companies like Apple, Microsoft, and Amazon operate as joint-stock companies, issuing shares that are traded on stock exchanges.