Joint Stock Company

Things to remember

• A joint stock company is a voluntary association of persons for establishing a business under the company act, 2053. It is a distinct legal person created by law.
• The company collects capital by selling the shares to individuals and organizations.
• Separate legal existence, transferable shares, limited liability, perpetual succession, common seal and democratic management are the characteristics of the company.
• A joint stock company has a permanent life.