Types of Joint Stock Company
Joint Stock company classified/divide on the basis of incorporation, liability, Numbers of Members and Ownership.
- On the based of Incorporation:
- Chartered Company: These are the specific company directly established by the royal family (King/Queen) or the head of the Nation. These companies enjoy their own special policy and regulation that created only for that company. Royal Bank of Scotland, Bank of England are some example of this company.
- Statutory Company: Company which are established under the special act by parliament are known as a statutory company. These companies are directly accountable to the parliament of the nation.
- Registered Company: Company which are register under company act are known as register company.
- On the based on liability:
- Unlimited Company: Company with unlimited liability are known as unlimited company.
- Limited Company: Company with limited liability up to the face value are known as the limited company.
- Limited by guaranteed Company: Those company where shareholders liability limited up to their agreement (Agreed to pay up to the certain amount which is more than their face value) for a certain amount.
- On the based on Number of Members:
- Private Limited Company: Shareholders from 1 – 101
- Public Limited Company: Minimum 7 shareholders and the maximum is not mentioned.
- On the based on Ownership:
- Government Company: Those company where there is more than 50% investment from government or its wings or subsidiary is known as a government company.
- Non-Government Company: Company, where there is less than 50 % or non-investment from Government, is known as a non-government company.