Setting up a Company by Shares

Joint-stock companies provided money for colonization in the 1600’s. A joint-stock company was formed by a number of individuals who each contributed various amounts of money in exchange for a certain amount of shares. Joint-stock companies established the first profitable colonies.

Joint venture is an agreement between two or more parties to gather or pool resources together so as to accomplish a specified goal. The main objective is to implement a new business idea or project. The venture is a separate entity from the participants and their businesses. However proceeds, losses and costs incurred from the activities of the venture, the participants are responsible.

A joint stock company was when people bought shares in companies that were hoping to explore the New World.

22.joint-stock company- The joint stock company allowed single-handed enterprises to gather their capital and gain more profit in the early 1600s.

For example, in 1606 two groups of people, merchants and adventurers, created a joint-stock company

A joint venture (JV) means; “An enterprise, co-operation or partnership, formed by two or more companies, individuals, or organizations, at least one of whom is an operating entity that wishes to broaden its activities for the purpose of conducting a new, profit motivated business of permanent duration. Some researchers such as Adnan and Morledge (2003) define joint ventures as the procedure used to respond to specific business phenomena such as access to new markets, specific government policy, business capacity, technology transfer or economies of scale. In general the ownership is shared by the participants with more or less equal equity distribution and without absolute dominance by one party.” This entity is subject to the joint control of its parent firms, each of which is economically and legally independent of the other (Shenkar, Zeira, 1987).

The requirements for starting a corporation in the United States.

In the united states, starting a corporation is not too hard, but it has some steps to it. A Corporation is a legal separate and distinct entity from its owner. "A corporation is created (incorporated) by a group of shareholders who have ownership of the corporation, represented by their holding of common stock. Shareholders elect a board of directors (generally receiving one vote per share) who appoint and oversee management of the corporation. Although a corporation does not necessarily have to be for profit, the vast majority of corporations are setup with the goal of providing a return for its shareholders. When you purchase stock you are becoming part owner in a corporation."(Investopedia.com)

A corporation the USA must be formed in compliance with corporate law, which is a state law. Most corporations incorporate
where their principal place of business is located, but not all do, for example, Delaware chancery(A court with jurisdiction to decide cases based on equity as well as law) has a reputation for fairly and quickly applying a very well-developed body of corporate law in the state of Delaware, that 's why lots of companies chose to corporate in the state of Delaware even though they have no business presence there.
To start a corporation, the corporate founders must file the articles of incorporation with the state agency charged with managing business entities.These articles might vary from

“Joint ventures (JVs) involve two or more legally distinct organizations (the parents), each of which shares in the decision making activities of the jointly owned entity

A joint venture (JV) can be mean by, an enterprise, co-operation or partnership that formed by two or more companies, individuals or organizations. However, there must be at least one of the parties working as an operating entity that wishes to broaden its activities for the purpose of conducting a new, profit motivated business of permanent duration. In general, the ownership, profit and risk are shared by every parties or participants in joint venture with more or less equal equity distribution and without absolute dominance by one party.

Joint ventures means that each party taking part in forming it would contribute their respective share to the new ventures, be that financial resources or management expertise. These pooled resources are usually correlated with high performance and good profitability. In addition, a joint venture is often formed under a clear goal, such as exploring a new market in another country.

The most common form of equity ownership in a company is common stock and by owning shares, you are a part-owner of the company. Along with ownership comes the right to vote on certain company issues such as voting for the board of directors, stock splits, and other company objectives (Harrison, Horngren, & Thomas, 2015). Common stockholders often have preemptive rights that allow shareholders to maintain their portion of ownership in a company should the company choose to sell additional shares. Along with the benefits there is a drawback, in the event a company declares bankruptcy, common stock shareholders are the last individuals to receive company assets behind creditors, bondholders, and preferred stock shareholders.

The creation of a joint venture company (JVC) is to combine forces from two or

How Directors will be elected Preemptive Right to new stock issues Procedures for changing Bylaws, if required

A company can secure large capital compared to a sole trader or partnership. A joint stock company has widespread appeal to the investors of all the types. Its capital is divided into shares of small value so that the people with limited means can also buy them. There is no limit on the number of shareholders in a public company. In addition, a company can borrow from banks to a large extent due to its high credit standing and also issue debentures to public

In the name of God them Merciful the most Compassionate, I wrote this research to everyone want to successes and get a good knowledge in the Stocks Issued by A Public Joint Stock Company (PJSC), I wrote this paper to every man and women and I put this project between their hand. I discuss in this project the characteristics of the share, types of shares, negotiation of shares in more deep details, loan stock(Debentures) and the last thing is the loss and destruction of shares and debentures. I try to collect as much as I can from the UAE Law. Finally, this project adds a good value to me and I hope it will be a good paper.