This document discusses corporate law in Pakistan. It provides an overview of the Companies Ordinance 1984, which governs corporate law in Pakistan and aims to consolidate and amend prior company law. The ordinance consists of 514 sections and 8 schedules. It regulates companies, investors, shareholders and other stakeholders. The goals of corporate law are to promote healthy corporate growth, protect investors and creditors, and encourage investment and economic development.
4. LAW
law means a set of rules.
It is enforced by the states to regulate the:
conduct of people
protect their property and rights
ensure justice.
5. CORPORATE LAW
Corporate law is related to the rights , relations and
companies , organizations and businesses.
Corporate law regulates how corporations , investors ,
shareholders , directors , employees , creditors , and
other stakeholders such as consumers interact with
one another.
7. Introduction
The corporate sector in Pakistan is governed by the
Companies Ordinance 1984 which was made on 8th
October 1984 and reshaped the Companies Act, 1913.
The main objectives of the Companies Ordinance 1984
were inter alia to consolidate and amend the law.
9. Eight schedules
Regulation of a Co’s ltd by shares
memorandum of association
article of association
Matters to be specified by prospectus rules and regulations.
Annual return report.
Balance sheet and profit and lost account of listed co’s.
Balance sheet and profit and lost account of non-listed
companies.
Fees to be paid to the registrar. Authority. And federal Govt
The detail of enactment (to give a practical shape)
Amendments
10. Purpose
Healthy growth of corporate
Protection of investors and creditors
Promotion of investment and development of
economy
11. History
The concept of company was developed in the 19th
century.
The first act was passed in the British India in 1850 for
the registration of joint stock co’s
Another act for the registration of joint stock cos in
the UK in 1884
A complete and basic act of 1913 was developed.
A company law commission was appointed by the
Pakistani govt in1959
12. Cont…
The submitted their report to the govt in 1960.
Its contents was made publically available in 1972
The title of the report was the company law
commission of Pakistan
At least in 1984 Pakistan has developed its own
complete law for their co’s in the form of “company
ordinance 1984”
13. Cont…
The major amendments to the Companies Ordinance,
1984 were made through the Finance Act 1995, the
Finance Act 1999. The Companies (Amendment)
Ordinance, 2002 and the Companies (Second
Amendment) Ordinance, 2002.The Finance Act, 1995
reshaped the Capital Issues Act, 1947,
14. Cont…
The Finance Act 1999 allowed companies to issue share
capital in accordance with their memorandum and
articles of association.
The Finance Act 1999 also allowed listed companies to
buy back their own shares subject to prescribed terms
and conditions
15. Cont…
In 2002, the concept of “single member company” was
introduced in the Companies Ordinance 2002,
through the Companies Ordinance 1984.
This concept has facilitated sole proprietorships to
obtain corporate status and has given them the
privilege of limiting the liability of their corporate. The
amendment has also been a positive step in
encouraging the documentation of the economy.
16. Cont…
The Companies (Amendment) Ordinance, 2002 also
strengthened the financial reporting requirements of
companies.
listed companies to publish and circulate quarterly
accounts and by reducing the period for holding the
annual general meeting of a company from six months
to four months from the close of the financial year.
17. Cont…
During 2002, the non-banking finance company
(NBFC) was introduced in the Companies Ordinance
1984 through the Companies (Second Amendment)
Ordinance, 2002
NBFC concept was to consolidate the non-banking
financial services sector and to allow multiple business
activities under one umbrella for the facility of the
customers.
