Ordinance, 1984(XLVII of 1984) and Companies Ordinance, 2016 (VI of 2016); (19) ― company limited by guarantee ‖ means a company having the liability of its members limited by the memorandum to such amount as the members may respectively thereby.
1 'Holding company' means a holding company as defined in Section 3 of the Companies Ordinance, 1984. A Guide to Company Name Selection in Pakistan. Is a legal entity formed by a person or association of persons for lawful business activities registered under the Companies Ordinance, 1984 (the ‘Ordinance’). The first step towards incorporation of a company is to seek the “availability of name” for the proposed company from the.
The corporate sector in Pakistan was governed by the Companies Ordinance 1984 which was promulgated on 8 October 1984 andrepealed the Companies Act, 1913. It is now replaced by Companies Ordnance 2016..The Companies Ordinance 1984 is a broad piece of Pakistani legislation that, according to its own preamble, is 'An Ordinance to consolidate and amend the law relating to companies and certain other associations'. It encompasses all legal rules and regulations for businesses registered with Security and Exchange Commission of Pakistan (SECP) and is enforced by that agency.[1]
Introduction[edit]
A company is a corporation. In the eye of law, it is a person which is different from its members. As company is person in the eye of law, it can own property. It can have rights and it can also be subject to the liabilities. A company is not agent of its members. The company cannot sue the members in case of liabilities and members of the company cannot sue it to enforce rights.
New Companies Ordinance
Main Point of difference between Public and Private Company[edit]
- Relevant statute:
- PRIVATE COMPANY -Private company has following restriction while these restrictions does not apply to other companies.(1) It cannot have members more than 50 excluding those are the employees of the company (2) It cannot invite the general public to subscribe the share of the company (3) It restricts freely transfer of share
- PUBLIC COMPANY - Companies Ordinance define the public company as a company that is not a private company. It means every company that is registered in Pakistan either it is a private company or a public company.
The Ordinance also provides legal protection and regulates the business community of Pakistan, with the SECP keeping a close check on financial and corporate entities to insure stakeholder’s interest.[2]
Companies Ordinance 1984 Download
The previous Companies Act 1913 was in practice for the same purposes.
Sources[edit]
Secp Pakistan Companies Ordinance 1984
- ^'Archived copy'(PDF). Archived from the original(PDF) on 6 March 2009. Retrieved 30 August 2009.CS1 maint: archived copy as title (link)
- ^http://www.secp.gov.pk/
Companies Ordinance Pakistan
The Securities and Exchange Commission of Pakistan (SECP) has decided to replace the 27 year old Companies Ordinance 1984 with a new company’s law, as the existing law has become flawed and needed replacement with the new law to make it compatible with current circumstances and rules prevalent in the world. A 12 member team of Corporate Law Review Commission (CLRC) of SECP will draft new Companies Law and send it to Parliament by the end of next year, said Chairman SECP Muhammad Ali on Tuesday.
Briefing the media he said the new Companies Law would replace the 27 year old Companies Ordinance 1984. He said that the Companies Ordinance 1984 has become flawed and there is a need to make some amendments in it so that it becomes compatible with the current circumstances and rules prevalent in the world. Muhammad Ali said that Companies Laws prevalent in England, India and Australia would be consulted during the process and representatives as well as stakeholders would take part in the process. He said that in the new Companies Law small, medium and large companies will be dealt separately. He said that the work on new Companies Law was started in 2005 but it was not completed and now SECP has started working on it once again. He said that there are five hundred clauses that would be deliberated and amended one by one.
According to him the next meeting for consultation on the law will be scheduled on December 17. The securities Bill has detailed provisions dealing with securities exchanges, clearing houses and central depository which includes eligibility criteria for their registration, their duties, regulation making powers and accounts to be maintained by them. The Bill also includes licensing requirements, eligibility for licensing of market intermediaries including securities brokers, securities advisors, share registrar, and underwriters.
The enforcement powers of SECP includes, the power to call for information, inspection, public offer of securities, publication and contents of prospectus, criminal liability for defective prospectus, compensation for false or misleading prospectus and market offences which include insider trading, market manipulation etc and their penalties he said. Chairman SECP while answering the questions said that process of legislation in the Parliament is quiet long and needed to be speed up as four Acts sent by SECP have struck for last two years in Parliament for approval.