Joint Stock Company Video Lecture | Business Studies (BST) Class 11 - Commerce

the fifth or the last form of a business
organization that we are going to
discuss here is joint stock company how
do we define joint stock company it can
be defined as an ad efficient person
created by law having a separate legal
entity perpetual succession and a common
see now the definition itself is you
know it explains the different features
and characteristics of a joint stock
company number one it is an artificial
person artificial person mean it it has
an entity it has an existence of its own
but it is not like a natural person you
can't see it you can't touch it you can
feel it right but it exists it is an
artificial person as it is a creation of
love artificial person created by law
having a separate legal entity meaning
the business organization company is
separate from the owners company's
separate from its owners there is a
distinction between owners and ownership
and the management then perpetual
succession perpetual succession meaning
it continues to exist year after year
the death lunacy etcetera of the members
of the company or the owners of the
company that is a shareholder it does
not affect the existence of the company
it still continues to exist and a common
see since it is an artificial person
capable of entering into contracts
signing contracts a people of swing
people being sued by people right but
because it is an artificial person it
does not have it cannot sign contracts
on its own right so the official
signature of the company in the form of
a stamp right that is called as a common
see so I hope now the definition of
company will become clear to you it can
be defined as an artificial person right
created by law having a separate
entity perpetual succession and power
see what are the features of company
number one separate legal entity many
volakis separate legal entity and
limited liability began and continued
existence yet Anoka bodily features when
it is compulsory for a business
organized for any particular form of
business organization to get itself
registered under any particular act your
companies also compulsorily required to
be registered under Companies Act 2013
the Jesse's car registration compulsory
1tk compulsory is castration the thin
features automatically are like a
separate legal entity limited liability
and continued existence separate legal
entity that means the business the
company has an entity separate from that
of its owners it is considered as a
separate person from the owners right it
is an artificial person it is not like
the natural person which can be seen
touched and felt it is an artificial
person created by law which is capable
of entering into contracts signing deals
okay showing people and B suit black
people clear then formation it is formed
as per the provisions of the Companies
Act 2013 whatever legal formalities are
required to be performed under the art
they have to be necessarily performed
then perpetual succession that is the
company continues to exist despite the
depth lunacy or bankruptcy of any of its
members right then control and ownership
now the ownership of the company it lies
with the shareholders right the
ownership of the company lies with the
shareholders right but the control of
the company lies with the management the
control of the company lies within that
means what does it mean that a
shareholders come with it basically how
does a company get the money okay I
think you have you if you've seen that
movie guru right there the concept of
the company has been beautifully disc
arrived right we're in this guy abhishek
it tells people that up lopressor very
company a pestle allow or Malik venture
what does that mean that you contribute
there are huge number of people all over
the world right we ask them even if one
one person even if each person
contributes of 1000 rupees can you
imagine the amount of financial pool
that are going to be creating right
although each person's contribution is
quite small and if he was you know to
invest that money himself in one of his
own ventures that would not mean
anything that would not mean anything
right but if I invest thousand rupee in
our company where there are millions of
people investing in that company there
is going to be a huge pool of financial
resource that is going to be created for
that company and that capital of the
company is divided into equal units
called as shares right and the
shareholders are nothing else but they
are the owners of the company so there
is not one owner of the company there
are millions and zillions of the owners
of the company right but because the
owners of the company are spread over a
wide geographical area what they do is
they select their representatives they
select their representatives in the form
of board of directors right they see
like they represent they select their
representatives right then their
representatives their representatives
that
in terms of the directors again they are
the ones who take the major decisions
for the company it is not the owners who
take the decisions for the companies but
it is the board of directors who take
the decisions for the managing the
affairs of the company right so when we
talk about control and ownership
ownership lies ownership lies with the
shareholders ticket ownership is going
to lie with the shareholders but it is
managed who is going to manage the
organization it is going to be managed
by the Board of Directors it is going to
be managed by the Board of Directors
then comes limited liability I told you
when an organization is registered under
any particular Act the liability of its
members is going to be limited to the
amount of capital that they have
contributed other many Hazara piggle a
company may go may need to make every
hazaa who pays it off that's it not more
than that my personal assets are not
going to be imported then I explain
common see because company's an
artificial person it cannot sign
contracts on its own so therefore there
is a stamp right which acts as the
official signature
of the company that is called as a
former see Chuck the company documents
paper common seal a yogi it will not
consider it as legal then risk bearing
Yahoo risk bearing is the relative
leanness why because the risk is spread
he can't amongst all the shareholders
risk is spread amongst all the
shareholders so therefore the risk to be
borne by every single shareholder is
relatively less last is transferability
of the shares shares can easily be
transferred in the name of anyone else
right so
you