Phase of the Development of Joint Stock Company
Joint Stock Company is a company whose stock is owned jointly by the shareholders. A missive change’ has taken place in the field of trade and commerce due to the Industrial Revolution in England from the middle of eighteen, century to the beginning of nineteen century. After that, larger production started by replacing the power of machine into the field of physical labor. In that situation, it became quite impossible to run larger production and distribution functions for sole proprietorship and partnership business due to some limitations. Consequently, for this massive and radical change, the idea of Joint Stock Company came out as an organization with the advantage of larger capital, limited liability, skilled functioning and direction and perpetual existence.
The word ‘Company’ is being used in the world of business from many years ago. It has seemed that some merchants used the word ‘Company’ firstly in about fifteenth century. At that time, on the basis of the legality of “Royal Charter,” provided by the king of England, a company was constructed. By the sequel of this Charter, East India Company, the Levant Company, the Russian Company etc got shaped. But those companies not completely as like as today’s company. Basically, they were the extended shape of Merchant Guides. After adopting Company Act 1994, we got the actual form of a Joint Stock Company.
In 1844, Joint Stock Company Act 1844 was adopted by the British Parliament. On the basis of this act, in 1950 the company Act was adopted in this subcontinent. For the betterment of the Joint Stock Company and the proper economy, this Company Act was being modified in 1857, 1862, 1866, 1882, 1887, 1891, 1895, 1900, and 1910 respectively. After all, the Indian Company Act 1913 got a complete shape of a joint stock company in this subcontinent.