Which of the following is true in respect of a joint stock company?

It is an artificial legal person

The correct answer is option 1- It is an artificial legal person.

It is an artificial legal person is true in respect of a joint stock company.

The company being an artificial person created by law continues to exist irrespective of the changes in its membership. A company can be terminated only through law. The death or insanity or insolvency of any member of the company in no way affects the existence of the company. Members may come and go but the company continues.  The company being an artificial person, cannot sign its name by itself. Therefore, every company is required to have its own seal which acts as official signatures of the company. Any document which does not carry the common seal of the company is not binding on the company.