These companies are all joint stock companies. A joint stock company is an association that falls between the meanings of an organization and company as far as investor risk. The Companies Act 1956 defines a joint stock company as an artificial person created by law, having separate legal entity from its owner with perpetual succession and a common seal. Any document bearing the common seal of the company, and signed by two directors, legally binds the company. Companies Act, 2013 provides that, the company shall have a Common Seal from the date of its incorporation. The Common Seal is the official signature of the Company. Here, comes the role of “Common Seal”. It is called a common seal as it can be used by any officer at any level of the organisation working on behalf of the company. ... Main objectives … Shares of such company are easily transferable. 7. All the acts of the company are authorised by its common seal. 6. Aims and methods. Any document bearing the common seal of the company, and signed by two directors, legally binds the company. a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business. (Company Act, 1994) A joint stock company is ‘an association of many persons who contribute money or money’s worth to a common stock and employ it for a common purpose’. July 22, 2015 (Updated on October 30, 2019) A common seal is a company signature that your company can use in certain circumstances to execute documents.This article sets out what a common seal is, and when and why you might use one. Brief notes on different Types of joint stock companies Short essay on joint stock companies What are the Advantages … Requires that a company must have a common seal with its name engraved on it. ADVERTISEMENTS: A careful analysis of the above mentioned definitions reveal the following important characteristic feature of a Joint Stock Company. €10,000 in sales in the next half year of trading. Common seal: Being an artificial entity, a company cannot act and sign itself. Let us see why. Definition A Joint Stock Company is a voluntary association of individuals for profit, having its capital divided into transferable shares, the ownership of which is the condition of membership. A company is an incorporated association of persons formed usually for the pursuit of some commercial purpose. The common seal can serve as its signature. Requires that a company must have a common seal with its name engraved on it. Common seal A joint stock company has a seal, which is used while dealing with others or entering into contracts with outsiders. Therefore, Company uses Common Seal as its Signature. In this Article we have thrown light on provisions pertaining to Common Seal contained in Companies Act, 1956, Companies Act, 2013 and SS-8. S – Specific – objectives are aimed at what the business does, e.g. After industrial revolution, there … Joint stock company is an organization that falls between the definitions of a partnership and corporation. It is die or signet on which, the name of the Company is engraved. Mobilisation of huge financial resources: The biggest advantage of company organisation is that it has the inherent ability to mobilise huge financial resources. Characteristics of JSC (Contd.) In the United States, investors of joint stock companies have a boundless risk for organization obligations, yet in the United Kingdom, investor risk is restricted to the ostensible estimation of offers held by every investor. According to the traditional view, company law is concerned with the organisation and functioning of joint stock companies, …

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