Joint stock companies - types of business organisations, Finance Basics

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Joint Stock Companies - Types of Business Organisations

Initiators contribute to the capital support of those companies via the purchase of shares of those companies. These companies are governed via the Companies Act as Cap. 486 of 1948. Such should be registered along with the Registrar of Companies after that it is issued along with a certificate of incorporation that indicates the Birth of the company.

Note

They cannot contribute outside the scope of their "objective clause" in the activities. Differences between a partnership and a company occur under the given factors as:

  • Agency
  • Legal view as entity
  • Title of shares (transferability)
  • Going relates as dissolution
  • Liability
  • Governance
  • Membership number.

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