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Unit 3: Concept of Retail Banking




          3.   Guardian must enter in this account because they are playing vital role in the whole  Notes
               process as specimen signature is of a guardian.
          4.   When minor attend the age of 21, he or she can operate account himself.

          18. Agent/Attorney

          Terminated upon:

               The death/insolvency/insanity of the principal
               If principal revokes agent’s authority
               If agent renounces the agency.

               If business of the agency is completed.
          19. Joint Accounts


               Appointment of an agent should be confirmed by all.
               Operations to be stopped in case of death, insolvency/insanity of any one. Payment to be
               nade to survivors the legal of the deceased.

               Anyone can stop payment.
               Alteration in a cheque drawn should be confirmed by the drawer itself.

          20. Partnership Firms

          Features are:
               Max no of partners are 20; 10 in banking
               Registration not mandatory, but only registered firms can file suits to enforce a contract.

               Minor can be admitted only to the benefits.
               A partner can bind the firm by doing usual business on behalf of the firm.
               A partnership is not treated as a separate entity from the partners.

          21. Joint Stock Company

          A joint-stock company is a business entity which is owned by shareholders. Each shareholder
          owns the portion of the company in proportion to his or her ownership of the company’s shares
          (certificates of ownership). This allows for the unequal ownership of a business with some
          shareholders owning a larger proportion of a company than others. Shareholders are able to
          transfer their shares to others without any effects to the continued existence of the company.
          Private Limited Companies
          1.   Minimum 2 and maximum 50 shareholders
          2.   Directors; min 2 max 7
          3.   Name must end with private limited.

          Public Limited Companies
          1.   Min: Directors 3, shareholders 7, max- no limit
          2.   Name must end with “Limited”



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