Advertisements
Advertisements
Question
Justify the following statement.
Registration of the Joint Stock Company is compulsory.
Advertisements
Solution
(1) A joint stock company is defined as an incorporated association. It means it is an association registered under the Companies Act or a special Act of Parliament. In fact, a company comes into existence only when it gets the Certificate of Incorporation from the Registrar of Companies.
(2) In other words, registration is similar to the birth of a company. On getting the Certificate of Incorporation, the company gets an independent legal existence i.e., it becomes a corporate body. An unregistered organisation or association has no corporate existence and hence it cannot be called a ‘company’. Hence, registration of the Joint Stock Company is compulsory.
APPEARS IN
RELATED QUESTIONS
Distinguish between the following:
Private Company and Public Company.
Justify the following statement.
A Joint Stock Company is an artificial person.
Justify the following statement.
The liability of a shareholder of company is limited.
Justify the following statement.
The ownership and management are separated in Joint Stock Company.
Complete the sentence.
Registration of Joint stock company is compulsory according to the Companies Act _______.
Answer in one sentence.
What is the meaning of Joint Stock Company?
Attempt the following:
Explain the five features of Joint Stock Company.
Attempt the following:
Explain the merits of Joint Stock Company.
Why is a private company more desirable than a public company? Give any two reasons.
What is the risk to shareholders in a joint stock company?
What term is used for the capital that is divided into small parts in a joint stock company?
Which company type is formed under the Companies Act, 2013?
What does ‘perpetual succession’ mean for a joint stock company?
Which is NOT a merit of a joint stock company?
What is one major demerit of a joint stock company?
Why do joint stock companies enjoy public confidence?
