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Joint-stock company definition

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.
At present, company law the existence of a joint-stock company is often identical with
incorporation (i.e. possession of authorized personality separate from shareholders) and limited
liability (meaning that the shareholders are only liable for the company's debts to the value of the
money they invested in the company). And as an outcome joint-stock company is generally
known as corporations or limited companies.
Some jurisdictions still provide the opportunity of registering joint-stock companies without
limited liability. In the United Kingdom and other countries which have adopted their form of
company law, these are known as unlimited companies. In the United States they are, to some
extent confusingly known as joint-stock companies. (Company means a company formed and
registered under this act or an existing company. Company Act 1994)

1. Chartered Company: The companies that form by the order of the king of England are
called the charter company. These companies were formed before 1844. For example,
East India Company, Chartered Bank of England, the charter of the British South Africa
Company, given by Queen Victoria.
2. Statutory Company: Companies that are formed by the order of the President, or by the
Legislative Committee or by bill of Parliament are called Statutory Company. These
Companies are operated by those laws. For example, municipal councils, universities,
central banks and government regulators, Central Bank.

3. Registered Corporation: Companies that are formed under the prevailing law of the

company are called the registered company. The corporation that has filed a registration
statement with the SEC prior to releasing a new stock issue. It is two typesi) Unlimited Company: The liabilities of the shareholders of this company are unlimited. For
example, British all-terrain vehicle manufacturer Land Rover, GlaxoSmithKline Services
Unlimited.
ii) Limited Company / Limited Corporation: The liabilities of the shareholders are limited.
For example, charitable organizations, Financial Services Authority. This liability of a company
can be of two types.
a) By Guarantee
b) By share value. The company limited by share can be of two types.
Private Limited Company, where the number of shareholder ranges from two to fifty. The share
of these companies cant be traded in the stock market.
Public Limited Company, where the number of shareholder ranges from seven to share
limitation. The share of the public limited company is traded in the stock market.

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