V SEM

COMPANY ORGANISATION

Prepared By:- Md. Tabrej.

Director,
Dept. of Business Administration.
 UNIT-I
Joint stock Company:-
A joint stock company is a business entity where
different stocks can be bought and owned by
shareholders.
Each shareholders owns company stock in
proportion, evidence by his or her share
(certificate of ownership).
This allows for the unequal ownership of a business
with some shareholders owning a large
proportion of a company than others.
 UNIT-I
Features:
The features of Joint Stock Company are as
follows-
1. An artificial person.
The company enjoys all the rights as a citizen of
a country would enjoy. It can own properties,
enter into contracts etc.
 Features:

2. Legal formation:
The formation of a joint stock company is
governed by the rules and regulations laid
down in the Companies Act, 1956.
3. Voluntary organization:
It is formed by members voluntarily joining the
organization and contributing money or
money’s worth for the business.
 Features:
4. Separate Legal Entity:
The company has a separate legal existence.
5. Perpetual Succession:
Unlike Sole proprietorship and Partnership, the
company has continuous existence. The
continuity of the company is not affected by the
death, insolvency or insanity of any member.
“People will come and go, but a company will
continue until its is wound up”.
 Features:
6. Large Capital:
A joint stock company can generate huge
amount of money towards capital, because
number of persons contributing towards
capital are more in number when compared
to sole proprietorship or partnership.
 Features:
7. Large Scale Operation:
Since huge amounts are collected as capital, the
operations of the business will generally be on
a large scale.
8. Transferability of Shares:
The shares of a Joint stock company are easily
transferable from one person to another.
 Features:
9. Common Seal:
The company being an artificial being, cannot
affix its signature on the documents on its
own. The common seal is used in place of the
signature.
 Kinds of Joint Stock Company
According to Incorporation:-
i. Chartered Companies.
ii. Statutory Companies.
iii. Registered Companies.
According to Liability:-
i. Companies Limited by Shares.
ii. Companies Limited by Guarantee.
iii. Unlimited Companies.
 Kinds of Joint Stock Company
According to Number of Members:-
i. Private Companies.
ii. Public Companies.
 Kinds of Joint Stock Company
i. Chartered Company:
This type of Company are incorporated under
Royal Charter issued by King or Head of the
State.
Example:-
East India Company.
This company are no longer formed in any
country.
 Kinds of Joint Stock Company
ii. Statutory Company.
These companies are formed under the special Act.
Of Parliament.
Example:- CBI (Central Bank of India)
iii. Registered Companies:-
In general the companies are established under the
Company Act of the country concerned. They are
known as registered companies.
Example:- Aditya Birla Group.