Unit II: Joint Stock Company

Which act governs the Joint Stock Company?

• Partnership Act, 1932

• Business Corporation Act

• Securities Exchange Act, 1934

• Companies Act, 2013

In a Joint stock company, shareholders liability is:

• Unlimited

• Equal to their investment

• Limited to the value of their shares

• as per government regulation

Who manages the company?

• Shareholders

• Directors

• Promoters

• Subscribers

The persons who signs the memorandum of association of a company are called ________

• Directors of Memorandom

• Shareholders of Memorandom

• Subscribers to Memorandum

• Promoters of Memorandum

Any act beyond the scope of memorandum of association is called ________

• Intra vires act

• Ultra vires act

• Illegal act

• All of the above

The act beyond of scope of Articles of Association but not ultra-vires Memorandum _________

• can be ratified

• cannot be ratified

• can be excecuted

• None of the above

____________ does not include complete particulars of the quantum or price of the securities.

• Shelf prospectus

• Red herring prospectus

• prospectus

• None of the above

How many members should sign the memorandum in case of a private company?

• 7

• 2

• 5

• 50

The list of rules and regulations of a company is mentioned in _________

• Articles of Association

• Prospectus

• Memorandum of Association

• Contracts

Company issue __________ to invite the public to subscribe to its securities?

• Official Notice

• Document

• Prospectus

• None of the above