Ch # 01 Company: Introduction, Types & Registration Flashcards
Features of company?
3S 3L PL
Seperate legal status
Shares and their characterstics
Separation of ownership from management
Limited liability of members/shareholders
Legal obligations
Liability to pay tax
Perpetual succession
Law and governance of a company
Body corporate?
Incorporated under Company Law
Incorporated outside Pakistan
Declared as body corporate under relevant statute
EXCEPTIONS:
Co-orporative society under any law relating to coorporative societies
Statutory body which fed. gov. specifies by notification
Foreign company?
BP
Bussiness activity in pakistan
Place of business or liaison office in pakistan
Holding company and subsidary company?
In both mnemonics are same:
BV
Controls composition of BOARD
Controls more than one-half voting securities
Registrar definition?
Ad AAJ
Additional registrar
Deputy registrar
Additional joint registrar
Assistant registrar
Joint registrar
Powers and duties of registrar?
Ammonic
Alteration in MOA and AOA
MOA/AOA
Mortgages
Officers
Name
Inspect
Certificate of commencement of business
Functions of SECP?
MC BIN
All the companies
Banking and non banking finance companies
Insurance Companies and modaraba companies
Members Definition?
NASS
Name mention in Register of members
Agree to become member
Shareholders of any class of shares
Subscribers of MOA
Association not for profit?
- Conditions / Criteria for grant of license (
PLU(Phrases2 C2)S )
Profit
Laws
Useful social objects
Specified form
__Useful social objects(Phrases^2c^2):
Promoting
Science
Arts
Commerce
Education
Religion
Sports
Health
Social welfare
Charity
- Revocation of license(RL JR MPT^2 UCP):
Registrar
Laws
Just and equitable
Members
Public interest
Terms and conditions
Unlawful Proper accounts
Terrorist Financing
Refuses to act
Not CARRYING on its business
- Effect of revocation of license(SERDDAR):
Stop all its activities
Except
Recovery of money
Donations
90 DAYS
Assets
Retain resonable expenses for winding up of company
- Report to registrar
After compliace of all above conditions Co. shall file report to regostrar within 15 days - Proceedings for windingup
Within 30 days of acceptance of report, BOD shall windup company, or making an application to registrar to remove its name from his records - Restrictions on members and officers of company:
Members and officers shall not hold any office Till 05 years from the date of transfer of assets
Association not for profit?
- Conditions / Criteria for grant of license (
PLU(Phrases2 C2)S )
Profit
Laws
Useful social objects
Specified form
__Useful social objects(Phrases^2c^2):
Promoting
Science
Arts
Commerce
Education
Religion
Sports
Health
Social welfare
Charity
- Revocation of license(RL JR MPT^2 UCP):
Registrar
Laws
Just and equitable
Members
Public interest
Terms and conditions
Unlawful Proper accounts
Terrorist Financing
Refuses to act
Not CARRYING on its business
- Effect of revocation of license(SERDDAR):
Stop all its activities
Except
Recovery of money
Donations
90 DAYS
Assets
Retain resonable expenses for winding up of company
- Report to registrar
After compliace of all above conditions Co. shall file report to regostrar within 15 days - Proceedings for windingup
Within 30 days of acceptance of report, BOD shall windup company, or making an application to registrar to remove its name from his records - Restrictions on members and officers of company:
Members and officers shall not hold any office Till 05 years from the date of transfer of assets.
Incorporation (Registration) of a company?
- partnership which consist of 20 or more persons formed for the purpose of gain shall required to be registered as a company.
- Exceptions (PTCL)
Lawyers
incorporated under any law in PAKISTAN
Carrying joint family business
partnership of two or more joint families
3.Steps in process of registration
Application for reservation of name:(RIP)
Registrar refuses
Incorrect information
Promoters or agreeved party make an application
Application to registrar and conditions for registration:(ADAM)
AOA signed by the subscribers
Declaration of compliance
Address for correspondence
MOA signed by subscribers
Approval of MOA by registrar:
Issue Certificate of incorporation
COI includes(Name, Reg. No., Date of incorp., Status public or private, Liability of company)
4.Effect of registration of MOA:(MD BSF)
subscribers become MEMBERS
proposed directors become DIRECTORS
BODY CORPORATE has formed
co. shall have same STATUS and registered office as
mentioned in the application made to registrar
body corporate shall perform all FUNCTIONS
What is included in Company Law?
Company law includes:
- repealed Companies Act 1913,
- repealed Companies Ordinance 1984 and 2016, and
- Companies Act 2017.
What is meant by Separate Legal Status?
A company is considered by law as an artificial person having separate legal status from its owners. This concept is called “Separate Legal Status of company” or “Doctrine of Corporate Personality”.
Define “Private Company”?
Private Company means a company which, by its articles:
Limits maximum number of its members to be 50 excluding employees (joint-holders are considered as 1 member).
Restricts right to transfer its shares, and
Prohibits invitation to general public to subscribe for shares (or debentures or other redeemable capital) of the company.
What are minimum number of members of a company?
Mode/Type of Company
Minimum Number of Members
Single Member Company
1
Private Company (other than SMC)
2
Public unlisted company
3
Public listed company
7
