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Monday, 13 June 2011

What are the main authorities and who controls and manage the affairs of the Joint stock company

Management Authority :-
Following are the important groups of persons who control and manage the affairs of joint stock company.

1. Shareholders.
2. Board of Directors.
3. Chief Executive.
4. Secretary.
5. Managing Agent.

Shareholders :-
These are the owners of the public limited company. But all the shareholders do not share in management. Because they are in large number and some shares are transferable. Majority of the shareholders are ignorant about the operation of the company. Generally those shareholders who are the relatives and friends of the promoters they take interest in the affairs of the company and use their votes.

Board of Directors :-
The shareholders of the company elect the directors in the annual general meeting of the company. The elected body is called Board of Directors. All the management of the company is in the hands of board of directors. A private limited company shall not have less than two directors and a public limited company not less than seven directors. The board may delegate any power to any one director or a committee.

Chief Executive or Managing Director :-
The board of directors appoints one of its director as a Executive Chief. He is also called the managing director of the company. As a director he shares the responsibilities of the board and as a chief executive. He carries out the management of the company.He is appointed for a period not more than 3 years. He acts upon the policies framed by the board of directors. He can not engage himself in any business which is like the business of a company.

Secretary :-
The secretary performs the secretarial work. He has a full time job. The most confidential matters of the company are associated with the company. A secretary of the company should be honest, efficient, sensible and a man of charter. He keeps the record of the meetings. He helps in the preparation of prospectus memorandum and article of association. He is very useful in the selection of officers of the company. He hies the documents to registrar for registration.

Managing Agent :-
To look after the business affairs of the company managing agents are appointed. According to company ordinance, no company in the world shall appoint any managing agent, by whatever named call by virtue of an agreement or contract with the company.

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