The Simplified Wealth of Nations of Adam Smith, Book 5, Chapter 1k: Private Copartneries vs Joint Stock Companies

Chapter 1k: Private Copartneries vs Joint Stock Companies

Private Copartneries Regulated Companies (corporations) Joint Stock Companies
Capital draws little capital draws a lot of capital draws a lot of capital
Management of capital Done by partners Done by board of directors Done by board of directors
Transfer shares need approval from company no need approval
Exiting can exit and demand payment cannot demand payment for shares
Liability unlimited limited to value of shares


104 Joint stock companies, established by royal charter or by act of parliament, differ from regulated companies and private copartneries.
  1. 105 In a private copartnery, no partner without the consent of the company can:
Upon proper warning, each member may: In a joint stock company, on the contrary:
  1. 106 In a private co-partnery, each partner is bound for the debts of the company to the extent of his fortune.
107 The joint stock company's trade is always managed by a court of directors.

Next: Chapter 1n: Royal African Company