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WHAT IS THE JOINT STOCK COMPANY ?
A company form of business organisation is known as a Joint Stock Company. It is a
voluntary association of persons who generally contribute capital to carry on a particular
type of business, which is established by law and can be dissolved only by law. Persons
who contribute capital become members of the company. This form of business has a legal
existence separate from its members, which means even if its members die, the company
remains in existence. This form of business organisations generally requires huge capital
investment, which is contributed by its members. The total capital of a joint stock company
is called share capital and it is divided into a number of units called shares. Thus, every
member has some shares in the business depending upon the amount of capital contributed
by him. Hence, members are also called shareholders.

The companies in India are governed by the Indian Companies Act, 1956. The Act defines
a company as an artificial person created by law, having a separate legal entity, with perpetual succession and a common seal.


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