joint stock and public enterprise
- 1. BRCM COLLEGE OF BUSINESS ADMINISTRATION ASSIGNMENT 2 (2015-2016) MANAGERIAL ECONOMICS-(PAPER-2) F.Y.BBA (SEM-2) TOPIC : JOINT STOCK COMPANY PUBLIC ENTERPRISE Presented by: group-2
- 3. INTRODUCTION Joint Stock Company is a voluntary association of different persons created by law as a separate body for specific purposes. It possesses a common capital contributed by its members such capital being divided into transferable shares. The liability of each such member is limited to the face value of the shares he holds.
- 4. DEFINITION
- 5. MEANING A company or association consisting of individuals organized to conduct a business for gain and having a joint stock of capital represented by shares owned individually by the members and transferable without the consent of the group
- 6. FEATURES Artificial person Created by law Capital divisible into transferable shares Limited liability Perpetual succession
- 7. Ownership is distinct from management Common seal Voluntary association Separate legal entity May sue or be sued
- 8. FORMATION
- 9. DOCUMENTS TO BE PROVIDED FOR CERTIFICATE OF INCORPORATION Memorandum of association Articles of association List of directors Consent of directors (in writing) Address of the company’s office Prospectus Declaration by secretary about legal requirements
- 10. CLASSIFICATION…
- 11. ON THE BASIS OF INCORPORATION CHARTERED COMPANY STATUTORY COMPANY REGISTERED COMPANY
- 12. ON THE BASIS OF LIABILITY LIMITED LIABILITY UNLIMITEDLI ABILTY LIMITEd BY Guarant-ee
- 13. ON THE BASIS OF NUMBER OF MEMBERS Private company Public company
- 14. ON THE BASIS OF CONTROL Subsidiary company Holding company Government company
- 15. ON THE BASIS OF PLACE OF REGISTRATION
- 17. PUBLIC VS PRIVATE COMPANY Number of members Transfer of shares Number of directors Subscription of shares
- 18. Provision for minimum subscription Word inserted after name Certificates Provisions of AOA First statutory meeting
- 19. MERITS Huge resources Limited liability Transferability of shares Stability of existence Efficient management
- 20. Scope for expansion Economies of large scale production Public confidence Social benefits Diffused risk Tax benefits
- 21. DEMERITS Difficulty in formation Oligarchic management Delay in decision-making Separation of ownership and management
- 22. Lack of secrecy Speculation in shares Fraudulent management Concentration of economic power Excessive Government regulations Evils of Factory system
- 23. SUITABILITY OF JOINT STOCK COMPANY Volume of business is large Businesses which involve heavy risks Business activities which require public support and confidence Ex: like production of pharmaceuticals, machine manufacturing, information technology, iron and steel, aluminum, fertilizers, cement, etc.
- 24. CONCLUSION…
- 27. Meaning: The business units owned, managed and controlled by the central, state or local government are termed as public sector enterprises also known as public sector undertakings. denotes a form of business owned and managed by the state government or public authority. undertaking owned & controlled by the local ,state or central government. The whole or most of the investment is made by the government.
- 28. definitions
- 29. features Autonomous or semi-autonomous organization State control Rendering service Useful to various sectors
- 30. Monopoly enterprises A direct channel for use of foreign money Public accountability Agent for implementing government plans Financial independence
- 31. OBJECTIVES OF PUBLIC ENTERPRISE Economic development Self-reliance Development of backward areas Employment generation
- 32. Economic surplus Egalitarian society Consumer welfare Public utilities Defence Labour welfare
- 33. Forms of management : • Departmental undertaking1. • Public corporation2. • Government company3.
- 34. MERITS Balanced growth Long period planning Facilities for economic development Greater public welfare Equal distribution of wealth
- 35. Better co-ordination Abolition of monopoly Greater economy Better relation with labour force Better deal to consumers Utilization of local resources
- 36. Achievement of self-reliance Establishment of heavy and strategic industry Balanced production
- 37. DEMERITS Lack of initiation and efficiency Lack of selection of goods Political interference Slow growth Poor management Lack of flexibility
- 38. SUITABILITY Public accountability and operational autonomy Monopoly powers Financial dependence
- 39. CONCLUSION…