Joint stock company (New Delhi)

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Joint stock company

big business activity. It is established by law and can be dissolved by law. The company has a separate legal existence so that even if its members die, the company remains in existence. Its members contribute money for some common purpose. The money so contributed constitutes the capital of the company. The capital of the company is divided into small units called shares. Since members invest their money by purchasing the shares of the company, they are known as shareholders and the capital of the company is known as share capital. In India, the joint stock companies are governed by the Companies Act, 1956. According to the Act, a company means a company formed and registered under this Act or an existing company. An existing company means a company formed and registered under any of the previous Companies Acts. This definition is not exhaustive enough to reveal the basic features of the company. However, based on the definition given in the previous Companies Act and various judicial decisions, it can be defined as an artificial person created by law, having a separate legal entity, with a perpetual succession.

25-02-2025 INDIA, New Delhi
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