Law

Organizational Structure of Joint Stock Companies

Introduction

A joint stock company is known as a business entity or a firm(s) which is as a matter of fact regulated as well as owned by the shareholders. Shareholders in this regard carry down with a proper authority the particular portion of that respective organization in accordance to their ownership of the shares of the organization or company. This therefore gives proper allowance for the unequal or non balanced kind of an ownership of a particular business with having some shareholders who as a matter of fact have a larger area of a company or organizations as compare to others. Shareholders are as a matter of fact termed to be unable or held to be non liable for transferring their respective shares to any other person or even to any other company or organization without proper permission from the company itself. Along with this if we highlight the modern corporate based rules as well as regulations, a joint stock company or organization is termed to be same or similar with the limited liability or even with the incorporation as well and this is the reason that why and in what manner joint stock companies are as a matter of fact termed as limited companies or even as corporations.

As a matter of fact there are numerous jurisdictions which provide various ways as well as methods with the help of which the process of registration of the joint stock companies is possible as well as easy without any concern of the limited liability. This is therefore termed as an important phenomenon which is considered in today's rules as well as regulations which are related to the joint stock companies. Therefore, what actually a joint stock company is illustrated above and below mentioned are some of the important as well as essential features or characteristics of the joint stock companies (Johnson, 1903).

Artificial person: Joint Stock Company is termed as a company that can enter into any contract and can enjoy every single right as every other citizen does.

Legal Formation Method: Companies Act 1956 is termed as a valid as well as one of an important law and the formation of the joint stock companies is also in accordance to the companies act and according to their rules as well as regulations.

Voluntary Form of an Organization: Joint stock companies are as a matter of fact formed by the mutual understanding as well as willingness of the members. Along with this contribution is also depending on the willingness of the members.

Own Legal Entity: Joint stock companies are termed as separate legal entities and this is the reason that why and how the owners have a different level as compared to the members. This is the reason that in what manner owners has different rights and members have different one.

Perpetual Kind of a Succession: Joint stock companies have as a matter of fact continuous kind of an existence. Therefore the company wills continua with its operations no matter what issues ...