Taking Initiative of Forming Joint Stock Company
A company is an artificial and fecal person. It is invented by law and is also dissolute by law. These companies are being got registration by the Companies Act, 1994. For the Companies of maximum countries have one registrar. He has given registration to those companies that are formulated and established by law and upon the law. He also gave Certificate of Incorporation on the basis of these. The formalities, in case Public Companies, are more as compare to other companies.
Taking Initiative: The first step of the formulation of a company is taking initiative, he or they who takes take the first proposal is called initiator(s). According to the Companies Act, 1994 section 5, “For private limited company minimum seven people are required for taking initiatives”. In these steps the initiator needs to go through a few steps:
a) Thinking about the business and its possibility.
b) The shape, characteristics, region, capital etc of the business.
c) The risk, problems, potentiality, and success of the business.
d) At the fourth step, the initiators need to select a name for the organization.