Bst ppt

Business Studies Project

Topic For PPT - About Joint Stock Company

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Index

There Are Total 10 Part's

Features - 2

Features

About

Merits - 2

Libilities

Merits

Examples

Limitaties - 2

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About

About The Joint Stock Company

Joint Stock Company

Meaning – Joint stock company is a voluntary association of persons for profit, having a capital divided into transferable shares._ A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares. Shareholders are able to transfer their shares to others without any effects to the company. - A joint stock company is an individual legal entity, apart from the persons involved. - The Company form of organisation is governed by The Companies Act, 2013. - The Shareholders are the owner of the company while The Board of Directors is the cheif managing body elected by the Shareholders. - Usually the owners exercise an indirect control over the Business.

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Features Part - 1

Features Of Joint Stock Company

Features - 1

-The Definiation of a Joint Stock Company Highlights the following features of a company.

(i) Artificial Person

(iii) Formation

(ii) Separate Legal Entity

The formation of a company is a time consuming, expensive and complicated process. It involve the preparation of several documents and compliance with several legal requirement before it can start functioning.

A Company is a creation of law and exists independent of its member. Like natural person, a company can own property ,incur debts,borrow money unlike them it cannot breathe,eat,run,talk,and so on. It is therefore called an artificial person

It is created by law and it is a distinct legal entity independent of its members. It can own property, enter into contracts, can file suits in its own name.

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Features - 2

(V) Liabilities

(Vi) Risk bearing

(iV) Control

The Risk of losses in a company is borne by all the share holders.In the face of financial difficulties, all shareholders in a company have to contribute to the debts to the extent of their shares in the company's capital

The management and control of the affairs of the company is undertaken by the Borad of Directors, which appoints the top management officials for running the business.The Shareholders ,however do noy have the right to be involved in the day-to-day running of the business.

The liability of every member is limited to the nominal value of the shares bought by him.Transferability of shares – Shares of public Co. are easily transferable. But there are certain restrictions on transfer of share of private Co. Common Seal- It is the official signature of the company and it is affixed on all important documents of company.

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Merits Part - 1

Merits Of Joint Stock Company

Merits

The company form of organisation offers a multitude of advantages, some of which are discussed below

Professional Management

Perpetual Existence

Transfer Of Interest

Limited Libilities

The ease of transfer of ownership adds to the advantages of investing in a company as the share of a public limited company can be sold in the market and as such can be easily converted into cash in case the need arises.

Limited liability of shareholder reduces the degree of risk borne by him. Also, only the assets of the company can be used to settle the debts, leaving the owner's personal property.

A company can afford to employ highly qualified experts in different areas of business management.The Scale of operation in a company leads to division of works.

Existence of a company is not affected by the death, insanity, Insolvency of member or change of membership. Company can be liquidated only as per the provisions of companies Act.

Limitation

Of Joint Stock Company

Limitation- 1

The major limitations of a company form of organisation are as follows

(ii) Lack of Secrecy

(iii)Lack of Motivation

(i) Complexity in Formation

It is very difficult to maintain secrecy in case of public company, as company is required to publish and file its annual accounts and reports.

Divorce between ownership and control and absence of a direct link between efforts and reward lead to lack of personal interest and incentive.

The formation of a company requires greater time, effort and extensive knowledge of legal requirement and the procedures involved

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Limitation - 2

(Vi) conflict in interests

(V) Oligarchic management

(iV) Delay in decision making

There may be conflict of interest amongst various stakehilders of a company. The employees, for example, may be interested in higher salaries, consumers desire higher quality products at lower prices

Co. is said to be democratically managed but actually managed by few people i.e. board of directors. Sometimes they take decisions keeping in mind their personal interests and benefit, ignoring the interests of shareholders and Co.

Red papism and bureaucracy do not permit quick decisions and prompt actions. There is little scope for personal initiative. Company are democratically managed through the Board of Directors which is following by the top management, middle management and lower level management

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More About

Joint Stock Company

More about

Registration Compulsory Lengthy and expensive formation process

Formation

Member

Minimum - 7Maximum - Unlimited

Capital contribution

Large Financial resources

Limited

Liabilities

Control and Management

Separation between ownership and managemnet

Some Real Life Examples of

Joint Stock Companies

RELIANCE IND.

JINDAL S&P

TATA MOTORS

OIL & NATURAL GAS

GRASIM

SBI

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Created By -

Piyush Banjare

From Class - 11th Commerce