chapter 2 Flashcards
Prohibited names
●Containing word or expression notified by SECP;
●Inappropriate, undesirable;or deceptive (in the opinion of SECP)
●Designed to exploit or offend religious sentiments of people.
●Identical With name of a company already registered
●Nearly resembling that name of a company already registered
Names which require prior approval of SECP
Prior approval of SECP required if proposed name suggest
●Patronage of any, past/present, Pakistani/foreign, Head of State
● Any connection with Federal Govt. or Provincial Govt. or any department or authority of any such government
●Any connection with any corporation set up by or under any Federal or Provincial law;or
●Patronage of, or any connection with, any foreign Government or any international organization.
●Establishing a modaraba management Co or to float a modaraba
●Any other business requiring a license from the government
Application of reservation of name
●A person may make an application in specified form and manner with a specified fee, to the registrar for reservation of any name
●Reservation can be made for a period of maximum 60 days.
●If it is found that a name was reserved, by furnishing false or incorrect information
-Such reservation shall be cancelled
-The person making application shall be liable to a penalty.
-If the company has been incorporated, it shall be directed to change its name.
●If application is refused by registrar, aggrieved person may within 30 days of the order of refusal prefer an appeal to SECP,
●Order of SECP shall be final and shall not be called in question before any court or authority
Rectification of Name
●If wrong name selected by Co,
-It may change name with the approval of registrar; and
-It shall change name within 30 days if registrar directs so
●Registrar shall, before issuing direction for change of name, give Co an opportunity of being heard
●If company fails to comply with above direction, registrar may
-Register company under a new name selected by him;
-Issue a certificate of incorporation on change of name; and
-Impose a penalty for non-compliance
Change of name
●special resolution
●approval of resgistrar
Effect of change of name
●Registrar shall enter the new name on register in place of old one
●Registrar shall issue a new certificate of incorporation altered to meet the circumstances
●Continue to mention former name along with its new name outside every business place and in all documents (for 90 days from date of issue of new certificate)
●Change of name shall not affect the rights & obligations of Co
●Legal proceeding may be continued against Co in new name
Publication of name
●Name and incorporation number of every limited/company shall be displayed outside company’s every office or place of business in a conspicuous position
●Company shall display a certified copy of certificate of incorporation at every place of business
●Name, address of registered office, telephone, fax number, e-mail and website addresses, if any, shall be mentioned on all documents appeared to be the documents of company.
●Level 1 Penalty on company and its officers for not displaying name in manner provided.
●Officer shall be personally liable for debt of company if he issue / authorize any document without mentioning the name of company (unless debt paid by the company itself)
