BUSINESS

ORGANIZATION
PRESENTATION
Prepared by :

21th March , 2016

Aditi Goel
Aditi Kakran
Akshay Panwar
Akshit Arora

JOINT STOCK
COMPANY

ACKNOWLEDGEMENT
This has been completed under the able
guidance of our lecturer Dr.Anupama.Sharma
We thank you maam for giving us the
opportunity to work on this presentation under
your constant guidance and support.

INTRODUCTION

A joint stock company can be defined as an

artificial person, created by law, having a
separate legal existence , perpetual succession
and a common seal.
For example, a group of 10 friends go to the
canteen to eat something.
Each of them contributes a given amount of
money as per their budget.
And with that pool of funds they buy some snacks
and eat it together.

1.

FEATURES

Artificial person.

Separate legal existence.

Perpetual succession.

A common seal / signature.

Limited liability
2.

COMPANY VS. PARTNERSHIP

Basis

S.n

Private Company

Partnership

1.

Number of
members

Minimum -2
Maximum- 50

Minimum -2
Maximum 10 in
Banking
and 20 in others

2.

Registration

Compulsory

Voluntary

3.

Minimum paid-up
capital

One lakh rupees

As required

4.

Directors

At least 2

No directors
required

5.

Name

Must affix Private Limited

No such requirement

6.

Regulating law

The Indian Companies

Act,1956

The Partnership Act

Limited

Generally unlimited

7.

Liability of
members

3.

BASIS OF
CLASSIFICATION

4.

1.) ON THE BASIS OF MODE

OF INCORPORATION

Chartered Companies.

Statutory Companies.

Registered or Incorporated Companies.

5.

2.) FROM THE VIEWPOINT

OF OWNERSHIP

Private company

Public company

Government company
6.

VIEWPOINT OF
LIABILITY OF
MEMBERS

Unlimited liability company

Company limited by shares

Company limited by guarantee

7.

4.) ON THE BASIS OF INTER

COMPANY RELATIONSHIP

Holding company

Statutory companies

8.

5.) ON THE BASIS OF

NATIONALITY

National or Domestic companies

Multinational or Transactional
company
9.

PRIVATE VS. PUBLIC

S.N

Basis

Private Company

1.

Numbers of members Minimum-2

Maximum-50

Minimum-7
Maximum-No limit

2.

Name

Must include
Limited

3.

Number of directors Minimum - 2

Minimum - 3

4.

Article of Association Must prepare its own

May adopt table A

as given in the
Companies Act.

5.

Public Subscription

Can issue shares

and debentures to
10.
the public.

Must include Private

Limited

Cannot issue shares

or debentures to the
public.

Public Company

S.n

Basis

Private Company

Public Company

6.

Prospectus

Need to issue
prospectus

Must issue and file a

prospectus

7.

Allotment of
shares

No restrictions on
allotment of shares

Cannot allow shares

without raising
minimum subscription
and without complying
with other legal
formalities.

8.

Commencement
of business

Can commence its

business immediately
after getting the
Certificate of
Incorporation.

Can commence
business only after
getting the Certificate
of Commencement of
Business.

9.

Transfer of
shares

Restrictions on transfer
of shares.

No restrictions on
transfer of shares.

Share warrants

Cannot issue share

warrants.

Can issue share

warrants per bearer.

10.

11.

MERITS OF A JOINT
STOCK
COMPANY

Limited Liability.

Large amount of capital.

Efficient management by professionals.

Large scope of expansion and diversification.

Transferability of shares.

Stability

12.

DE-MERITS OF A
JOINT
STOCK COMPANY

Difficulty of formation.

Excessive government control.

Delay in decisions.

Lack of secrecy.

Conflict of interests.

Lack of motivation and personal touch.

13.

Q.1) WHO IS THE C.E.O OF TATA

INDUSTRIES PVT. LIMITED ?

Q.2) IDENTIFY THE EMINENT

PERSONALITY.
HE IS INFORMALLY
KNOWN AS
THE CZAR OF INDIAN IT
INDUSTRY.

Q.3) WHICH FAMOUS PERSONALITY

HAS BEEN INCLUDED IN THE LIST
OF MOST INFLUENTIAL PEOPLE ON
THE INTERNET AS PER THE
TIMES MAGAZINE.
HE WAS ALSO CALLED THE
INTERNET STAR

Q.4) AFTERAISHWARYA RAI

BACHCHAN,SONAM
KAPOORAND
FREIDA PINTO
WHOIS THE FOURTH BRAND
AMBASSADOR
OF LOREAL PARIS IN INDIA ?

$22.5
BILLION AS OF 1ST MARCH.
IN 1995 ,HE OPENED HIS
COMPANY
BY THE NAME OF
CHINA YELLOW PAGES.
IDENTIFY THE
PERSONALITY ?

CONCLUDE
TODAY'S
PRESENTATION
THANKS.