The joint stock company is an association of persons having a separate legal existence, perpetual succession, common seal, common capital etc. The joint stock company divides its capital into a large number of parts with each value where each part of capital is called share. The person who holds the share is called shareholders of the 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.
The company is a corporate body whose life is not connected with the life of the shareholders. The company is managed by the board of directors who is the representatives of shareholders. The member of the board is elected by the shareholders.
According to L.H. Haney, “A joint stock company is a voluntary association of individuals for profit having a capital divided intro transferable shares, the ownership of which is the condition of membership. Again a company is an artificial person created by law having a separate entity with a perpetual succession and a common seal."
According to Lord Lindley."By a company is meant an association of many persons who contribute money or money's worth to a common to a common stock and employ it for a common purpose.
Therefore, a joint stock company is a corporate organization having a separate legal existence, perpetual succession, common seal, common capital etc. managed by the representatives.