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Corporate law
Section – b
Report on types of companies
Submitted to
Sir baber saleem
Group members
Ghulam abid
Saad mazhar
Mohammad fareed
Mohammad wahaj

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ACKNOWLEDGEMENT
Firstof all I thankto ALLAH ALMIGHTY .We are verygrateful toour respectedSirBaberSaleemwhogave
me thisopportunity. Thisistoacknowledge thatourinstructorhas excellentlytreated us and shared his
experiencesandexpertise withal the groupmembersand helped us through out the prepration of this
reportas well aspresentation.Thereforeall the membersof the group are heartly thankful to Sir Baber
for hisco-operationandprecioustime.We GhulamAbid,SaadMazhar,FareedHameedand Mohammad
Wahaj dedicate this complete presentation to her for his kindness and support.
.
Month Day Year

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EXECUTIVE SUMMARY
A company is an association or collection of individuals, whether natural persons, legal persons, or a
mixture of both.Companymembersshare a common purpose and unite in order to focus their various
talents and organize their collectively available skills or resources to achieve specific, declared goals.
The companieswhichare formedunderspecialstatutes are termed as statutory companies. These are
governedbythe Actsor Ordinance throughwhichthese are created.Example of suchtype of companies
isthe state Bank of Pakistan, small Business Finance Corporation, investment Corporation of Pakistan,
etc. A statutory corporation is a corporation created by statute
Charteredcompaniesare formedby means of a special charter granted by the head of state, or King or
Queenof the Crown.Normallythese enjoycertainexclusive rights and privileges on other associations
of persons.A government company is a company of which not less than 51% (fifty-one percent) of the
paidup capital isheld by the Government. A company which is a subsidiary of a Government company
automatically becomes a Government company. The defining characteristics are that they have a
distinct legal form and they are established to operate in commercial affairs.
A company other than a company registered as private limited company is called public limited
company.Companies’ordinance defined certain conditions for public limited companies which are as
under:
A company registered as public limited company does not impose any restrictions on the number of
members that the company can have.
A Public company is a company which does not impose any restriction on the right of transfer of its
shares.Listedcompanyisthe companywhichhas itsshareslistedonanystock exchange.UnlistedPublic
companiesare those companies whose shares are not listed on any stock exchange of the country and
these type of companies are not allowed to trade their shares through stock exchange.
It means a company whose memorandum of association limited the liabilities of its members to the
amountas the membersmayrespectivelyunder take to contribute to the assets of the company in the
event of its winding up. This company may or not have a share capital.
In a companylimitedby guarantee,there are noshares - hence there are no shareholders. Instead, the
company will have 'members'. The members of a company limited by guarantee are bound by a
guarantee inthe company'sarticlesof association,which requires them to pay the company's debts up
to a fixed sum. It is a company which is registered without limited the liability of the members to the

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extent of the value of the shares held by them. Now-a-days such type of companies is not found in
Pakistan.
Table of Contents
Company ---------------------------------------------------------------------- 01
Types of Companies --------------------------------------------------------- 01
Statutory Company ----------------------------------------------------------- 01
Chartered company----------------------------------------------------------- 02
Government company-------------------------------------------------------- 02
Registered companies -------------------------------------------------------- 03
Company limited by shares -------------------------------------------------- 04
Private limited company ------------------------------------------------------04
Public listed company ---------------------------------------------------------05
Company limited by Guarantee ----------------------------------------------06

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Public Unlisted Company------------------------------------------------------
COMAPANY
A company is an association or collection of individuals, whether natural persons, legal persons, or
a mixture of both. Company members share a common purpose and unite in order to focus
their various talents and organize their collectively available skills or resources to achieve specific,
declared goals.
TYPES OF COMPANIES
Following are the types of companies:
1. Statutory Company
2. Chartered Company
3. Government Company
4. Single Member Company
5. Registered Company
STATUTORY COMPANY:
The companies which are formed under special statutes are termed as statutory companies.
These are governed by the Acts or Ordinance through which these are created. Example of such
type of companies is the state Bank of Pakistan, small Business Finance corporation, investment
Corporation of Pakistan, etc. A statutory corporation is a corporation created by statute. Their
precise nature varies by jurisdiction thus they might be ordinary companies/corporations
owned by a government with or without other shareholders, or they might be a body without
shareholders which is controlled by national or sub-national government to the (in some cases
minimal) extent provided for in the creating legislation.

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Bodies described in the English language as "statutory corporations" exist in the following
countries in accordance with the associated descriptions.
CHARTERED COMPANY:
Chartered companies are formed by means of a special charter granted by the head of
state, or King or Queen of the Crown. Normally these enjoy certain exclusive rights and
privileges on other associations of persons. The East India Company and the Chartered Bank of
England are examples of such type of companies. A chartered company is an association
formed by investors or shareholders for the purpose of trade, exploration and colonization.
Chartered companies were usually formed, incorporated and legitimized under a royal or, in
republics, an equivalent government charter. This document set out the terms under which the
company could trade; defined its boundaries of influence, and described its rights and
responsibilities.
GOVERNMENT COMPANY:
A government company is a company of which not less than 51% (fifty-one percent) of
the paid up capital is held by the Government. A company which is a subsidiary of a
Government company automatically becomes a Government company. government-owned
corporation, state-owned company, state-owned enterprise, state-owned entity, state
enterprise, publicly owned corporation, government business enterprise, commercial
government agency, public sector undertaking is a legal entity that undertakes commercial
activities on behalf of an owner government. Their legal status varies from being a part of
government to stock companies with a state as a regular stockholder. There is no standard
definition of a government-owned corporation (GOC) or state-owned enterprise (SOE),
although the two terms can be used interchangeably. The defining characteristics are that they
have a distinct legal form and they are established to operate in commercial affairs. While they
may also have public policy objectives, GOCs should be differentiated from other forms of
government agencies or state entities established to pursue purely non-financial objectives
Government-owned corporations are common with natural monopolies and infrastructure such
as railways and telecommunications, strategic goods and services (mail, weapons), natural
resources and energy, politically sensitive business, broadcasting, demerit goods (alcohol) and
merit goods (healthcare). GOCs can be fully owned or partially owned by government. As a

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definitional issue, it is difficult to determine categorically what level of state ownership would
qualify an entity to be considered as "state-owned", since governments can also own regular
stock, without implying any special interference.
SINGLE MEMBER COMPANY
Single member company (SMC) has been introduced through the companies Ordinance
2002.The Single Member Company shall have all the rules and rights and privileges as well as
obligations and liabilities as other private company has.
REGISTERED COMPANY:
Registered companies are those companies which are registered in Pakistan under the
Companies Ordinance, 1984 or any previous Companies Act or Ordinance. A corporation that
has filed a registration statement with the Security Exchange Commission prior to releasing a
new stock issue.
Registered companies are further classified into the following three broad classification:
 Company Limited by Shares
 Companies Limited by Guarantee
 Unlimited Company

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COMPANY LIMITED BY SHARES
It means a company whose memorandum of association limited the liabilities of its members to
the amount unpaid, if any, on the shares held by them in the capital of the company.
In such a company, the shareholders' obligation is to pay the company for the shares they have
taken in it. The individual puts money into the company, and in return the company gives it a
percentage of ownership, in the form of shares (how much of a company the individual in
question owns depends on how many shares he/she has in comparison with the other people,
if any, who own shares in that company). The price of an individual share can be any value -
usually, though, the 'nominal' value of a single share will be £1. (It is also common for shares to
be bought and sold at their 'market value' - i.e. what an investor deems them to be worth in
reality - but this is outside the scope of this website.)
Once the shares are fully paid for (and this would usually be the case with a private limited
company) no further money is payable by the shareholders. Their liability to the company is
satisfied. If the shares are issued unpaid (which can sometimes be the case for a variety of
reasons), then if the company is wound up it can call on the shareholders who have not paid for
their shares to do so. Either way, the liability of the shareholder is limited to the amount they
have paid, or they are due to pay, to provide adequate consideration for the shares that they
own. Company limited by share includes two categories:
 Private Limited Company
 Public limited Company
PRIVATE LIMITED COMPANY
As per the provisions of companies’ ordinance, 1984 private limited companies are defined as:
A private limited company is the company which restricts the right to the transfer the shares if
any.
Private Limited Company restricts the maximum number of members to be fifty.

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Private Limited Company prohibits any kind of invitation to general public to subscribe for its
any shares and pay any amount to the company in that respect.
PUBLIC COMPANY
A company other than a company registered as private limited company is called public limited
company. Companies’ ordinance defined certain conditions for public limited companies which
are as under:
A company registered as public limited company does not impose any restrictions on the
number of members that the company can have.
A Public company is a company which does not impose any restriction on the right of transfer
of its shares.
Public company does not impose any restriction on the invitation to general public to subscribe
for its shares and pay any amount in respect of that subscription. A public company can be
further classified into two categories:
 Listed company
 Unlisted company
Listed Companies
Listed company is the company which has its shares listed on any stock exchange. In Pakistan at
the moment companies are listed on three stock exchanges of the country namely Karachi
Stock Exchange, Lahore Stock Exchange and Islamabad Stock Exchange.
Unlisted Company
Unlisted Public companies are those companies whose shares are not listed on any stock
exchange of the country and these type of companies are not allowed to trade their shares
through stock exchange.

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COMPANY LIMITED BY GUARANTEE
It means a company whose memorandum of association limited the liabilities of its members to
the amount as the members may respectively under take to contribute to the assets of the
company in the event of its winding up. This company may or not have a share capital.
Means a company having the liability of its members limited by the memorandum to such
amount as the members may respectively thereby undertake to contribute to the assets of the
company in the event of its winding up.
In a company limited by guarantee, there are no shares - hence there are no shareholders.
Instead, the company will have 'members'. The members of a company limited by guarantee
are bound by a guarantee in the company's articles of association, which requires them to pay
the company's debts up to a fixed sum.
UNLIMITED COMPANY
It is a company which is registered without limited the liability of the members to the extent of
the value of the shares held by them. Now-a-days such type of companies is not found in
Pakistan.