VOLUNTARY WINDING UP UNDER THE SUPERVISION OF COURT

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According to section 396 of Companies Ordinance, a voluntary winding up of a company can also be carried under the strict registration of the court. 1.  Resolution At first, company has to pass special resolution for the voluntary winding up of the company. 2.  Supervision Order Following are the common grounds on which the court issues the supervision order: 1.  The liquidator performs his duty in partial manner. 2.  The winding up resolution is obtained by fraud. 3.  The liquidator does not strictly observe the rules of winding up the company 3.  Power of the Court The court has the power to appoint an additional liquidator, or to remove any liquidator. 4.  Dissolution After the supervision order is made, the liquidator may exercise his powers in winding up of a company.  On completion of winding up, the court will make an order that the company is dissolved. Share Capital; In simple words, the term “capital” means the particular amoun...
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ADVANTAGES AND DISADVANTAGES OF JOINT STOCK COMPANY

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ADVATNAGES OF JOINT STOCK COMPANY

Following are the advantages of Joint Stock Company: 
 
1. Expansion of Business 
A joint stock company sells the shares, debentures and bond s on large scale. So, a joint 
stock company can collect a large amount of capital and can expand its business. 
 
2. Easy Access to Credit 
A joint stock company can get a huge amount of capital from banks and other institutions. 
 
3. Easy to Exit 
It is easy to separate oneself from a joint stock company by selling his shares. 
 
4. Experts’ Services 
Because a joint stock company has a strong financial position, so it may hire the service of 
qualified and technical experts. 
 
5. Employment 
Joint stock companies are also playing very important role to provide employment to 
unemployed persons of the country. 
 
6. Flexibility 
There is flexibility in such business organizations. 
 
7. Limited Liability 
The liability of the owner is limited. In case of loss, the shareholders are not required to pay 
anything more than the face value of the shares.

8. Large Scale Production 
Availability of huge amounts of capital makes possible for a joint stock company to produce 
goods on very large scale, at a lower cost. 
 
9. Larger Capital 
There is no problem of capital in a joint stock company because there is not limit for 
maximum number of members. So, a joint stock company collects capital from many 
people. 
 
10. Long Life 
A joint stock company has a permanent life. If one or more than one shareholder die, or sell 
their shares, it makes no difference to the company. New shareholders take their place. 
 
11. Long‐term Projects 
A joint stock company has a permanent and long life and huge capital. Such organizations 
can undertake the projects, which may give profit after many years. 
 
12. Spread of Risk 
In joint stock company, the risk of business is spread over a large number of people. Such 
organizations can undertake risky projects, which other types or organization do not take. 
 
13. Transfer of Shares 
In joint stock company, the shares of public limited company can be easily transferred or 
disposed off. There is no restriction on the transfer of shares in a joint stock company. 
 
14. Increase in Saving and Investment 
The shares are in large number but their value is small. The shares of a company may have a 
value of Rs. 10, Rs. 100 etc. So, rich as well as poor can purchase the shares of a company. 
This leads to increase in savings and investment. 
 
15. Better Management 
Such organization is administered by the elected directors. These directors are generally 
experienced and qualified in business field. This increases the efficiency of the company. 
 
16. Beneficial Advices 
A joint stock company can take beneficial advices from the government at the time of need 
which reduces the chances of its failure. 
 
17. Public Confidence 
A joint stock company is created by law and is supervised by legal authority. So, a joint stock 
company can easily win the public confidence. 
 
18. Higher Profits 
With the help of larger capital and technical skill, the cost of production is reduced, which 
increases the rate of profit.

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