Concept, Characteristics, Merits and Demerits, Types, Memorandum of Association, Articles of Association and Prospects, Incorporation, Agenda and Resolution, Winding- up of Joint Stock Company
A sole trading and partnership business could not meet the requirement of the large-scale organization. Both of them have limited fund and unlimited liability. There is a lack of managerial ability in sole trading and partnership firm. So, the joint stock company was established. A joint stock company is established under the Company Act, 2053.
This note contains the main document of the joint stock company. Main document of joint stock company are Memorandum of Association, Article of Association and Prospectus.
Meeting conducted under joint stock company is of two types: a general meeting and BOD meeting. A general meeting is consist of Statutory general meeting, Annual general meeting, and Special general meeting. Board of Directors Meeting is the gathering of directors in connection with the business and management of the company.
The characteristics and advantages and disadvantages of the Joint Stock Company are explained briefly in this note. A joint stock company is an artificial person which is created by the law. It has no physical shape as a natural person but has almost all the rights of a natural person. It can sue others as well as can be sued by others.
Incorporation of a joint-stock company means recognition. The joint stock company must be registered in the office of the Company Registrar under the provision of the Company Act, 2063 B.S. for its legal recognition.
The subject which is to be discussed to come to a final decision is called Agenda. Its main objective is to conduct the meeting in a systematic way without missing any item. All the decisions that are taken in the meeting are in the form of resolution. A resolution must be clearly written.