What are the main Features of Joint Stock Companies?

      

What are the main Features of Joint Stock Companies?

  

Answers


sharon
1. As already noted a joint stock company is an association of people who contribute capital
to form common stock in order to carry on a business activity for product motive.
2. The company formed comprises- corporate status and is registered under the company’s
act.
3. A joint stock company may be public or private company and its main features include;
4. Legal personality – the company has identities separates from that of other persons
contributing capital and can therefore hold property, contract in its own name sue and be
sued.
5. The shares are transferable – the share holders can sell their interest in the companies to
other persons willing to invest in it (freely for public ltd company but limited to the
consent of the rest of the shareholders for private company.
6. Common sill – as a separate entity it will be necessary for a joint stock company to sign
documents and such signatures are normally embodied in a common sill of a company.
The sill is kept under custody of the responsible offices.
7. Members/ shareholders can not bind the company by their Acts
8. Individual/ members are not entitled to take part in business since it is managed by the
board of directors
9. Shareholders have a limited liability.
sharon kalunda answered the question on March 2, 2019 at 10:04


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