If you have been looking for information about charter and joint stock companies, you will be happy to know that we have decided to put together a little bit of information for you. Below you will find some great information about everything you might want to know about these companies.
A charter and joint stock company is a business that is a type of partnership or corporation. The company will issue stocks in return for the indicated amount of the stock and ownership of those stocks is transferred to the contributor. The shareholders are free to sell their interest in the company by means of their stockholding to other people.
There are two main types of charter and joint stock companies. The first is a private company. These are also sometimes referred to as an unlisted company. These companies do not allow their shares to be sold on the open market. The shares of these companies are usually held by Company Secretary and directors.
The other type of charter and joint stock companies is public companies, or listed companies. These companies, unlike private or unlisted companies, allow their shares to be sold on the open market. This means that they are listed on the stock exchange. The directors of these companies do not have any control over the selling or purchasing of the shareholdings. This means that a public company is able to be purchased by or taken over by another. The way that this is done is by gaining controlling interest in a company through purchasing its shares. This is the reason that many businesses remain private companies for the added security when it comes to the liability of its shares and share holders. A public company, due to the way it’s selling and purchasing of shares works, can possibly be taken over at any time.