Business Law

what is a joint stock company?

• An enterprise in which the charter capital is divided into units of equal value called shares

• An enterprise in which the minimum number of shareholders is 03

• An enterprise in which a shareholder's liability for the company's debts and liabilities is limited to the amount of capital contributed to the company

• An enterprise in which shareholders may not transfer their shares to other persons

what is a joint stock company's charter capital?

• The total face value of subscribed shares

• The total face valued of sold shares

• The total number of authorized shares

• The total value of the company's assets

What are authorized shares in a joint stock company?

• The total number of shares that are offered by the GMS to raise capital

• Shares that have been fully paid for the shareholders

• Shares that have not been paid for by the shareholders

• The total number of subscribed shares

What is the minimum number of shareholders allowed in a joint stock company?

• 1

• 2

• 3

• 4

What is the maximum numbers of shareholders allowed in a joint stock company?

• 10

• 50

• 100

• No limit

Can shareholders transfer their shares to other persons?

• Yes, shareholders can transfer their shares to anyone at any time.

• No, shareholders cannot transfer their shares to anyone

• Shareholders can transfer their shares except in certain cases specified by the law

• Shareholders can only transfer their shares to other shareholders of the same company.

What types of securities can a joint stock company issue?

• Shares only

•  Bonds only

• Both shares and bonds

•  Other kinds of securities but not shares or bonds

What is the minimum percentage of independent members required on the Board of Directors of a joint stock company?

• 10%

• 20%

• 30%

• 40%

Are holders of redeemable preference shares entitled to vote at the General Meeting of Shareholders?

• True

• False

 A joint stock company with fewer than 11 shareholders and where the shareholders that are organizations hold less than 50% of the company's total shares is not required to have a Board of Controllers.

• True

• False