Joint Stock Company Case Study

Description of joint stock company:

An organization or association comprising of people organized to direct a business for pick up and having a joint stock of capital spoke to by shares claimed exclusively by the individuals and transferable without the assent of the gathering.

FORMATION OF A JOINT STOCK COMPANY

Stage I*

Promotion

a) Discovery of Idea

b) Investigation

c) Assembling

d) Financial arrangement

Stage II*

Registration or Incorporation

a) Preparation of MOA and AOA

b) Filing of necessary documents for Registration

c) Issue of Certificate of Incorporation

After that you should identify the types of the company, there are two types of Joint Stock Company they are:

1- Private Limited Company 2-

General Partnerships Partners divide responsibility for management and liability, as well as the shares of profit or loss according to their internal agreement. Equal shares are assumed unless there is a written agreement that states differently. In a general partnership, but profits and losses flow through to the partner’s tax returns.

A general partnership the basic form of partnership under common law, is in most countries an association of persons or an unincorporated company with the following major features: * To be established by agreement and contract.

* Consists of two or more partners.

* All partners shall be equally responsible for any legal order of the Company's debt.

*Partners in the public company share equally the company's responsibilities and obligations.

Formation and funding of the General Partnership

The partnership agreement

Management of the General Partnership

General partners have management rights.

A general partnership is managed by the partners, but the management rights are not required to be equal. The partners are free to enter into a written agreement specifying the duties, responsibilities, rights, powers and limitations of each partner. In the absence of a written agreement, however, all partners have equal rights to manage the business of the partnership and to enter into agreements, incur obligations, or conduct other activities on behalf of the partnership business.

Liability of the General Partnership

General partners of a limited partnership have unlimited liability for debts and obligations of the partnership. the owners of a partnership have boundless individual liability. each partner in an organization is mutually at risk for the partnership's commitments. Joint liability implies that the partners can be sued a gathering. A several liability implies that the partners are independently at risk. each partner is both mutually and severally at risk for the harms coming about because of the wrongdoing of different partners, and for the obligations and debts of the