Students can go through AP Inter 1st Year Commerce Notes 6th Lesson Joint Stock Company – Formation will help students in revising the entire concepts quickly.

AP Inter 1st Year Commerce Notes 6th Lesson Joint Stock Company – Formation

→ Joint Stock Company is one kind of business unit.

→ It is a corporate business unit.

→ A joint stock company is commenced with a minimum of 7 members and maximum members are unlimited.

→ Joint stock company is also known as a public limited company which is governed by the Indian Companies Act, 1956.

→ The capital amount is contributed to the company by 15 members through the purchase of shares. So, it is called “Share capital”.

AP Inter 1st Year Commerce Notes Chapter 6 Joint Stock Company – Formation

→ The members invest their money by purchasing the shares of the company, they are known as “Shareholders”.

→ The joint stock company is an artificial person created by law, it enjoys a separate legal entity.

→ The liability of the members is limited.

→ Company form of organization is divided into two types,

  1. Private Limited Company
  2. Public Limited Company

→ Company form of organization is commenced with the issue of prospects and the formation process is completed by obtaining the certificate of commencement of business.