Chapter: 1 Accounting for Share Capital
Chapter: 1 Accounting for Share Capital Definition of Joint Stock Company The Companies Act 1956 defines a joint stock company as “an artificial person created by law, having separate legal entity from its owner with perpetual succession and a common seal”. Section 2 (20) of the Companies Act, 2013 defines a company as “ a company incorporated under this Act or under any previous Companies Act”. Features of Joint Stock Company (i) Artificial person (ii) Voluntary association (iii) Created by law (iv) Capital divisible into transferable shares (v) Limited liability (vi) Perpetual succession ( vii) Common seal (viii) Separate legal entity from its members (ix) May sue or be sued Kinds of Companies (i) Private companies According to Section 2 (68) of the Companies Act, 2013, it is a company with minimum paid-up share capital of ^ 1,00,000 or such higher amount as may be prescribed in the Compa...
