TH E HOME, FARM AND BUSINESS CYCLOPEDIA. 



STOCK COMPANIES. 



819. Or'i't.ni-'dlon. When a stock company is organized, it is done 

 by several persons coming together and making a certificate to the effect 

 that they propose to form a corporation to bear a certain name, for the 

 purpose of transacting a certain kind of business at a certain place ; and 

 that they propose to issue a certain number of shares at a certain price 

 per share ; that the capital stock of the corporation is to be a certain 

 amount ; and the duration of the corporation a certain period of time. 

 This certificate is filed in the office of the Provincial Secretary, after hav- 

 ing been previously advertized in the Gazette. 



A subscription book is then opened and the shares of the company are 

 disposed of by subscription, the persons subscribing paying ten per cent, 

 down, arid the balance afterward at such times and in such payments as 

 the by-laws, hereafter to be made, may designate. 



After one-half of the capital stock has been subscribed for, a meeting of 

 the subscribers is called and by-laws are by them made ; a record of the 

 proceedings in this meeting is then filed in the office of the Provincial 

 Secretary, whereupon a certificate is issued to the effect that the corpora- 

 tion is fully organized according to the laws of the Province. 



820. Stock Holders or Share Holders. Certificates of Stock are issued 

 to each of the subscribers for the number of shares by each subscribed. 

 These certificates are transferable at the pleasure of the owners, except 

 when the owners are indebted to the corporation, then the transfer cannot 

 be made without the consent of the corporation. 



821. Capital Stock Increased or Diminished. The capital stock of a 

 corporation may be increased or diminished by a vote of a majority of the 

 stockholders representing a majority of the stock, a statement of which in- 

 crease or decrease of stock must be filed with the Provincial Secretary. 

 The capital stock of a corporation is never allowed to exceed a certain 

 amount, that amount being determined by the laws of the Province gov- 

 erning " Corporations." 



82S. Book-keeping for a Stock Company. A " Capital Stock " ac- 

 count is opened in the General Ledger, which account is credited when- 

 ever capital is paid in, i. e., when payments are made on subscriptions, the 

 Capital Stock account is credited for the amounts of such payments. 

 When all the shares originally issued by the corporation are sold and paid 

 for, then the Capital Stock account will be credited for just the amount 

 that the certificate originally issued and filed with the Provincial Secre- 



