Major Classifications of Joint Stock Company
When some people voluntarily construct an organization by investing their money for the purpose of earning profit according to the rules and regulations of the respective country is called Joint Stock Company. It is a company whose stock is owned jointly by the shareholders.
There are three major classifications of Joint Stock Company
Chartered company: Company that has been constructed by the law of ‘Royal Charter’ before formulation and implementation of the Companies Act. Chartered companies were usually formed, incorporated, and legitimized under a Royal or in Republics, an equivalent government charter. For example, the companies that form by the order of the King of England are called chartered company; East India Company, Chartered Bank of England, the Charter of the British South Africa Company, given by Queen Victoria.
Statutory company: The Company that is constructed, functioned, or regulated by the parliament of the country or by the order or special order of the President of a country is called ‘Statutory Company’. These Companies are operated by the laws. For example municipal councils, universities, central banks etc.
Registered company: The companies that are registered or formulated by the regulation of law are called a registered company. Joint Stock Companies in Bangladesh are formulated, registered and regulated with respect to the Companies Act- 1994.