Commercial Applications
The features of a joint stock company are :
- Separate legal existence
- Limited liability
- Perpetual succession
- All of these
Answer
All of these
Reason — The distinctive features of a joint stock company include separate legal existence (a distinct legal entity independent of its members), limited liability (liability of members is limited to the nominal value of shares held), and perpetual succession (uninterrupted existence not affected by death or insolvency of members). Other features include transferability of shares, common seal, separation of ownership and control, voluntary association, artificial legal person, corporate finance, statutory regulation and being a registered body.
Related Questions
Statement I : A company is a creation of the law and only the law can bring an end to its existence.
Statement II : The life of a company does depend on the life of its members.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
Which of the following statements is correct?
- The death of members affect the life of a company
- Members may come and go but the company goes on until it is wound up.
- The members of a company can be held liable for the debts of the company.
- Shareholders are the joint owners of the company's property.
Statement I : A shareholder can't withdraw his membership from the company by transferring his shares.
Statement II : In actual practice some restrictions are placed on the transfer of shares.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
A joint stock company is a …………… association of certain persons formed to carry out a particular purpose in common.
- voluntary
- corporate
- legal
- liable