Students can go through AP Inter 1st Year Commerce Notes 6th Lesson Joint Stock Company – Formation will help students in revising the entire concepts quickly.
AP Inter 1st Year Commerce Notes 6th Lesson Joint Stock Company – Formation
→ Joint Stock Company is one of the kind of business units.
→ It is a corporate business unit.
→ A joint stock company is commenced with minimum 7 members and maximum members are unlimited.
→ Joint stock company is also known as public limited company which is governed by Indian Companies Act, 1956.
→ The capital amount is contributed to the company by 15 members through purchase of shares. So, it is called “Share capital”.
→ The members invest their money by purchasing the shares of the company, they are known as “Share holders”.
→ The joint stock company is an artificial person created by law, it enjoys separate legal entity.
→ The liability of the members is limited.
→ Company form of organisation is divided into two types,
- Private Limited Company
- Public Limited Company
→ Company form of organisation is commenced with issue of prospects and formation process completed by obtaining the certificate of commencement of business.