Bissoy.com
Doctors Medicines MCQs Q&A

Justify the following statement:

A Joint Stock Company is an artificial person.

5 views

1 Answers

  • A Joint Stock Company is an incorporated association, which is an artificial person created by law, having a separate name, a separate legal entity, and perpetual succession.
  • It is an artificial person because it is the creation of law.
  • It does not have a physical existence but has legal existence.
  • It enjoys certain rights and also conducts business like any human being.
  • A company is an artificial person because it is not developed by the process of a natural person.
  • It is the law of the land that gives birth to a company, hence, it is an artificial but legal person.
  • A company has a distinct name and a common seal.
  • It can make contracts, appoint staff, borrow money, open an account in the bank, acquire assets and conduct other business activities by its office bearers and staff.
  • It can sue and be sued by others. So, a Joint Stock Company is an artificial person, created by law.
  • Thus, a Joint Stock Company is an artificial person.

5 views

Related Questions