Are,you,Ignorant,Member,Joint, business, insurance Are you An Ignorant Member of A Joint stock Company?
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What is a joint stock company? Every time you turn your head while in your populated town all you read is the word company (Co) labeled on the buildings, cars, posters etc. Have you ever thought how they are managed? So, what is a joint stock company? You want to tell me its an association of persons who come together for a specific purpose. Well, I dont dispute this but what about the statutory definition? Let me define it for you, right? Statutorily, a joint stock company is an association of persons who are registered under the companies Act. Ouch! This one doesnt sound complete to bring a clear elaborate meaning that satisfies you. Ok, let me elaborate it by not using the statutory approach It is either a voluntary association or organization of persons who have contributed money or moneys worth to a common stock. These persons employ this money or moneys in some business or trade and there after share either the profits or losses from such a trade or business. Got it? Right!Let us consider Haney definition, A joint stock company is an incorporated association, which is an artificial person created by law, having a separate entity, with a perpetual succession and a common seal. You now conclude from these definitions that the persons who contribute the money and moneys worth are the members of that Co. These money and moneys worth contributed is what is referred to as the companys capital. What the Co does is that it divides its capital into a fixed value of shares.The members of the Co are entitled a share which actually represents their money and moneys worth. Through these shares, the members possess the ultimate control of the company. Here is how you exercise the control power of your Co as a member:1. You can install new directors.2. You can remove existing directors.3. You are the one who amend the memorandum of association.4. You are the one who amend the article of association.5. Lastly, in any general meeting, the directors cannot act without your approval in certain cases.There are many types of companies which are classified on the following basis:On the Basis of Nationality1. Domestic.2. Foreign.On the Basis of Incorporation or Registration1. Chartered.2. Statutory.3. Registered.On the Basis of Ownership1. Government.2. Non government.On the Basis of Liability1. Limited by shares.2. Limited by guarantee.3. Unlimited.On the Basis of Control1. Holding.2. Subsidiary.On the Basis of Members1. Private.2. Public.