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Joint Stock Company

corporation partners stockholders partnership

An association engaged in a business for profit with ownership interests represented by shares of stock.

A joint stock company is financed with capital invested by the members or stockholders who receive transferable shares, or stock. It is under the control of certain selected managers called directors.

A joint stock company is a form of partnership, possessing the element of personal liability where each member remains financially responsible for the acts of the company. It is not a legal entity separate from its stockholders.

A joint stock company differs from a partnership in that the latter is composed of a few persons brought together by shared confidence. Partners are not free to retire from the firm or to substitute other persons in their place without prior assent of all the partners. A partner's death causes the dissolution of the firm.

In contrast, a joint stock company consists of a large number of stockholders who are unacquainted with each other. A change in membership or a transfer of stock has no effect on the continued existence of the company and the death of a stockholder does not result in its dissolution. Unlike partners in a partnership, a stockholder in a joint stock company has no agency relationship to the company or any of its members.

A joint stock company is similar to a corporation in that both are characterized by perpetual succession where a member is allowed to freely transfer stock and introduce a stranger in

Anxious investors wait for news about the South Sea Company, a joint stock company formed in London in 1711. Joint stock companies are a form of partnership in which each member, or stockholder, is financially responsible for the acts of the company.
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the membership. The transfer has no effect on the continuation of the organization since both a joint stock company and a corporation act through a central management, board of directors, trustees, or governors. Individual stockholders have no authority to act on behalf of the company or its members.

A joint stock company differs from a corporation in certain respects. A corporation exists under a state charter, while a joint stock company is formed by an agreement among the members. The existence of a joint stock company is based upon the right of individuals to contract with each other and, unlike a corporation, does not require a grant of authority from the state before it can organize.

While members of a corporation are generally not held liable for debts of a corporation, the members of a joint stock company are held liable as partners.

In a legal action, a corporation sues and is sued in its corporate name, but a joint stock company sues and defends in the name of a designated officer.

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about 3 years ago

I have a query to you about the "incorporation certificate no. C-64201 (1692)-06". Is it valid or fake? ?? Which company bear that certification number? ?? Kindly inform me. It will be helpful for my bright future.

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over 6 years ago

Joint stock company is a unity of people at which people invest their money to get profit.

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almost 9 years ago

joint stock company is very large company which required huge investment and expinditure

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about 7 years ago

Joint stock company is an artificial person which created by law with perpetual succession and limited liabilities to achieve their goal by collect share capital from public at reasonable cost.

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over 7 years ago

A joint Stock Company has a separate legal entity. it has got a common seal with which it enters intro contract with third party, a joint stock company is able to raise funds in millions from internal and external sources. it is a third major type of Business Organization.

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almost 8 years ago

joint stock company is a unity of shareholder to perform a basic important of human being and human resources