Concept of Joint Stock Company its feature

We know that business is a lawful activities that is performed according to rules regulation of concern government to increase the living  standrad of common people. 

There are a number of forms of business organization. These forms are sole proprietorship,partnership, cooperative societies, joint hindu family, joint stock company etc.  Every  form has its own merit, demerit,application . Among all Joint Stock Company is one of the best and popular  from because it is only form  that has limited liability. 

Joint stock company is voluntary association of people who contributes their capital in the form of shares to carry on a certain type of business for earning profit. 

Features of Joint Stock Company 

There are many features of Joint Stock Company.These features are as beow.

1. Voluntary Association of people -It is the first feature of joint stock company . It is a voluntary association of people  who invest their money to earn profit.

2. An artifical person- Joint stock company works like an artifical person. It is a legal person that is establised by rules regulation of concern government . It has its own bank account, land , assets and so on. 

3. Separate legal entity- It has also a separate legal entity from its founder. It is  identifies among people from its name , logo, seal etc.

4. Limited liability- It is one of the best characteristics of joint stock company. It has limited liability. The liability of shareholders is restricted the extent of the unpaid value of the share held by them . The personal asset of share holders may not used to pay the liabilities of company.

5 Share transferability- Its share is transeferabale from one person to other person according to guidline of goverment.

6. Common seal - It has a common seal. It is identified among in world economy by its seal.

7. Long life- Its life is very long. It operates its function in market many years, decades, centuary. The  share holder can sell their share and new person purchase the share. There is no impact of exchanging share on the company .

8. Lawful from- It is a lawful form of business because it is estabilsed according to rules, regulation, law of concern  government . In india it is estabised according to companies act 1956.  

9. Huge among of capital - It has huge amount of capital because it has large number of shareholders who invest maximum money to earn maximum profiot. 

10. Large scale business- It operats its function at large scale . It has a team of management who is different from share holders  they perform their function by effective efficent way to earn maximum profit so this type of firm operates at large scale.

* Type of joint stock company

joint stock company is an important from of business orgnation . There are three types of joint stock company. These types are as below- 

1. Chartered company- It is the first type of joint stock company . The company that is incorporated by the king or the head of the state is know as charted company.

2. Statutory company- The company that is establised according to particular act of  concern parliyament this type of company is know as statutory company . The power, right, duty, responsibility of company is mention in this act. 

3. Registered company- The company that get registeration after establishment according to rules regulation, law of concern government. This type of company is called registered company.