elaborately explained about types of joint stock companies

1. A PRESENTATION ON
JOINT STOCK COMPANY
Presented By:
Akash bharadwaj 160213732002
Krishnarao 160213732014

2. DEFINATION
 The limitations of sole-proprietorship and partnership forms of ownership
gave birth to joint stock company form of organisation. Two important
limitations of earlier form of organisation were inadequacy of funds and
unlimited liability. The earlier form of organisation could not meet the
increasing demand for funds of organisation. The other limitation which
hampered the growth of business was the unlimited liability of owners.
 A joint stock company(JSC) is a company whose capital is divided into shares
and the liability of whose shareholders is limited to the par value of the
shares respectively held by them.

4. According to incorporation
 Chartered companies
 Registered companies
 Statutory companies

5. ACCORDING TO LIABILITY
 COMPANIES LIMITED BY SHARES
 COMPANIES LIMITED BY GUARANTEE
 UNLIMITED COMPANIES

6. According to transferability of shares
PRIVATE LIMITED
 Members 2-50
 It must have at least two director
 The shares are not freely transferable
 It can start the business after the
receipt of certificate of incorporation
 The directors need not hold qualification share
 There is no restriction on the number of directorship
 Two members present in the meeting is
a quorum at general meeting
PUBLIC LIMITED
 minimum 7-maximum unlimited
 It must have at least three directors
 Shares are freely transferable
 It requires trading certificate for starting business
 The directors have to purchase some qualification
shares to become the director
 A director cannot be a director of more than 20
companies
 Five members present in the meetings is a
quorum at general meeting.

7. MERITS OF JOINT STOCK COMPANY
1. ACCUMULATION OF LARGE RESOURCES
2. LIMITED LIABILITY
3. CONTINUITY IN EXISTENCE
4. EFFICIENT MANAGEMENT
5. ECONOMIES OF LARGE SCALE PRODUCTION
6. TRANSFERABILITY OF SHARES
7. SOCIAL BENEFITS

8. DEMERITS OF JOINT STOCK COMPANY
1 DIFFICULTY IN FORMATION
2 SEPARATION OF OWNERSHIP AND MANAGEMENT
3 DOUBLE TAXATION
4 EXCESSIVE GOVERNAMENTAL CONTROL
5 CONTROL BY BOARD OF DIRECTORS
6 LACK OF SECRECY
7 DELAY IN DECISION MAKING

9. procedure of Formation of a Joint Stock Company
Promotional steps
Registration or
incorporation
Floatation stage
• Planning
• Feasibility analysis
• Naming of the
company
• Collecting Registration
Form and Filling it up
• Preparing Documents and Submitting for
Registration
• Obtaining Certificate of Commencement

10. Examples of Joint Stock Companies in India.
Reliance Industries Ltd State Bank of India
Tata Motors Ltd Indian Oil Corporation Ltd

11. Thank you for listening…