Accounting For Share Capital, Illustration (Accounts Class 12th)br accounting for partnership firms fundamentalsbr accounting for partnership firmbr br The third stage in the development of organisational forms is the corporation form. A lot of people have contributed to its capital.br br referred to as shareholders, who are the actual proprietors of thebr br company. However, it is also not possible for all of them tobr br neither participate in the company's managementbr br regarded as desirable. As a result, they choose a Board.br br of Directors in their capacity as their agent to oversee thebr br activities of the business.