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Class : 11
Unit : Business


Concept of Joint Stock Company

Ans : Joint stock company is an artificial person created by law having a separate legal existence, perpetual succession and common seal. It performs all the business activities in its own name and for this purpose it uses common seal. According to Nepal Company Act 2063, “Company means any limited company incorporated under this act.” In conclusion, Joint Stock Company is a voluntary association of persons having common economic objectives of earning profit and wealth. Capital of company is generated by issuing transferable shares. It is managed by the representatives of shareholders. In Nepal, a joint stock company must be registered in accordance of provision of Nepal company Act 2063.
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