The LLP Act was passed in:

2008. The Limited Liability Partnership Act, 2008.

Maximum partners in a general business partnership (as per text):

50. Maximum is fifty for general business.

Membership of a Joint Hindu Family business is by:

Birth. Only by birth in the family.

A company is called an artificial person because it is:

Created by law. It comes into existence through legal registration.

Liability of members in a company limited by shares is limited to:

Unpaid value of shares. Members pay at most the unpaid part.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 Secretarial Practice Chapter 2: Joint Stock Company

Short notes, key concepts, quick revision and practice MCQs with answers

The chapter traces the evolution of business organisations from sole proprietorship to companies and explains the features and types of joint stock companies, comparing them with other forms.

Key concepts: Joint Stock Company

Forms before company: Sole proprietorship, partnership (max 50 for general business), Joint Hindu Family business (membership by birth, co-parceners) and Limited Liability Partnership.
LLP: Governed by the LLP Act, 2008. Partners have limited liability; minimum two partners, no maximum.
Joint stock company: An artificial legal person created by law; registered under the Companies Act, 2013.
Features: Separate legal entity, perpetual succession, limited liability, common seal (optional now), transferable shares in public companies.
Types: Private company, public company and One Person Company; also listed and unlisted.

Quick revision: important points

Company can own property and sue in its own name.
Members' liability is limited to unpaid value of shares held.
Shares of a public company are freely transferable.

Practice MCQs with answers

The LLP Act was passed in:
1. 2008
2. 1932
3. 2013
4. 1956
Show answer
Answer: A. 2008
The Limited Liability Partnership Act, 2008.
Maximum partners in a general business partnership (as per text):
1. 10
2. 20
3. 50
4. Unlimited
Show answer
Answer: C. 50
Maximum is fifty for general business.
Membership of a Joint Hindu Family business is by:
1. Birth
2. Purchase
3. Election
4. Lottery
Show answer
Answer: A. Birth
Only by birth in the family.
A company is called an artificial person because it is:
1. Created by law
2. Made of plastic
3. A machine
4. A robot
Show answer
Answer: A. Created by law
It comes into existence through legal registration.
Liability of members in a company limited by shares is limited to:
1. Unpaid value of shares
2. Whole personal wealth
3. Nothing at all
4. Twice the shares
Show answer
Answer: A. Unpaid value of shares
Members pay at most the unpaid part.

All Class 11 Secretarial Practice chapters

Class 11 Secretarial Practice notes: all chapters