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1. Corporate and Business
Law (LAW409)

2. SUNDAY 02 FEBUARY 2025
Contract Act 1872
Companies act 2017
“comparative index of Companies act, 2017
vs
Companies ordinance 1984”
Partnership Act 1932
Arbitration Act 1940

3. Laws to be discussed
Contract Act 1872
Companies act 2017
“comparative index of Companies act, 2017
vs
Companies ordinance 1984”
Partnership Act 1932
Arbitration Act 1940

4. Business and Corporate Laws in Pakistan
Introduction
Vital area of legal practice that governs the
Formation
Operation &
Dissolution
of businesses and corporations

5. Objectives of Business and Corporate Law
• Regulatory Compliance:
• Protection of Rights:
• Dispute Resolution:
• Promotion of Fair Competition:

6. Overview of Business and Corporate Laws in Pakistan
• 1. Legal Framework
• Constitution of Pakistan
• Statutes
• Regulations &
• Case law

7. • Companies Act, 2017:
• Partnership Act, 1932:
• Contract Act, 1872:
• Securities Act, 2015:
• Consumer Protection Laws:

8. 2. Types of Business Entities
• Sole Proprietorship:
• Partnership:
• Limited Liability Company (LLC):
• Private Limited Company:
• Single Member Private Limited Company
• Public Limited Company:
– Listed
– Unlisted
• Non-Governmental Organizations (NGOs):

9. 3. Corporate Governance
• Board Structure:
• Shareholder Rights:
• Transparency and Disclosure:

10. 4. Regulatory Authorities
• Securities and Exchange Commission of
Pakistan (SECP):
• Federal Board of Revenue (FBR):
• State Bank of Pakistan (SBP):
• Competition Commission of Pakistan (CCP):

11. 5. Dispute Resolution Mechanisms
• Litigation:
• Arbitration:
• Mediation:

12. SUNDAY 09 FEBRUARY 2025

13. Sources of Laws in Pakistan
• The legal system of Pakistan is based on a
combination of various sources of law that
provide the framework for governance,
regulation, and the administration of justice.
• The sources of law in Pakistan can be broadly
categorized into primary and secondary sources,
along with customary practices.

14. 1. Primary Sources of Law
• 1.1 The Constitution of Pakistan
• Supreme Law:
– Adopted in 1973
– Provides the fundamental legal framework for the
governance of the country
– Outlines the rights and responsibilities of citizens
– The structure of government
– The relationship between the state and
individuals.

15. • Fundamental Rights: The Constitution
guarantees fundamental rights to all citizens,
including the right to equality, freedom of
speech, and protection against discrimination.
• Amendments: The Constitution can be
amended through a specific legislative
process, which requires a two-thirds majority
in both houses of Parliament.

16. • Amendments:
• 8th
Amendment in 1985
• 13th
Amendment in 1997
• 18th
Amendment in 2010
• 26th
Amendment in 2024

17. 1.2 Statutes
Legislation: Statutes are laws enacted by the
Parliament of Pakistan or provincial assemblies.
They cover a wide range of subjects, including
criminal law, civil law, business law, and
administrative law.
Types of Statutes:
Federal Statutes: Laws applicable throughout
Pakistan, such as the Companies Act, 2017, and
the Income Tax Ordinance, 2001.

18. – Provincial Statutes: Laws enacted by provincial
assemblies that apply only within the respective
province, such as the Punjab Tenancy Act, 1887.
• Enactment Process: Statutes are proposed as
bills, which must be debated and approved by
both houses of Parliament before receiving
presidential assent to become law.

19. • 1.3 Regulations
• Delegated Legislation: Regulations are rules
made by governmental agencies or authorities
under the authority of a statute. They provide
detailed guidelines for the implementation of
laws.
• Examples: The Securities and Exchange
Commission of Pakistan (SECP) issues
regulations under the Companies Act to
govern corporate practices, while the Federal
Board of Revenue (FBR) issues rules related to
tax administration.

20. • 1.4 Case Law (Judicial Precedents)
• Judicial Decisions: Case law refers to the body
of law established by judicial decisions in
courts. These decisions interpret statutes and
regulations, providing clarity and guidance on
legal issues.

21. • Precedent: In Pakistan, the principle of stare
decisis applies, meaning that lower courts are
bound to follow the decisions of higher courts.
The Supreme Court’s rulings are particularly
influential and serve as binding precedents for
all lower courts.
• Importance: Case law helps in the evolution of
legal principles and fills gaps in statutory law,
providing practical interpretations of legal
provisions.

22. 2. Secondary Sources of Law
• 2.1 Legal Commentaries
• Scholarly Analysis: Legal commentaries are
written by legal scholars and practitioners that
analyze and interpret laws, providing insights
into their application and implications.
• Purpose: These commentaries serve as
valuable resources for understanding complex
legal issues and are often cited in legal
arguments and court decisions.

23. • 2.2 Treatises
• Comprehensive Works: Treatises are
extensive written works that cover specific
areas of law in detail. They provide in-depth
analysis, case studies, and practical guidance.
• Examples: Treatises on contract law,
constitutional law, and corporate law are
commonly used by legal professionals and
students.

24. • 2.3 Legal Encyclopedias
• Summaries of Law: Legal encyclopedias
provide concise summaries of legal principles,
statutes, and case law. They serve as quick
reference guides for legal practitioners and
researchers.
• Examples: The "Encyclopedia of Pakistan Law"
is a notable resource that covers various
aspects of law in Pakistan.

25. 3. Customary Law
• 3.1 Definition
• Customary Practices: Customary law refers to
established practices and traditions that have
gained legal recognition over time. These
practices may not be codified in statutes but
are accepted as binding within specific
communities or regions.

26. • 3.2 Application
• Personal Law: In matters of personal status,
such as marriage, divorce, and inheritance,
customary law often plays a significant role,
particularly among different religious and
ethnic communities.
• Recognition by Courts: Courts may recognize
and enforce customary laws as long as they do
not conflict with statutory law or
constitutional provisions.

27. 4. International Law
Treaties and Conventions
• International Agreements
– Human Rights: Pakistan has ratified several key
human rights treaties, such as:
• International Covenant on Civil and Political Rights
(ICCPR):
• International Covenant on Economic, Social and
Cultural Rights (ICESCR):

28. • Trade: Pakistan is a member of the World
Trade Organization (WTO) and has entered
into various trade agreements that facilitate
international trade and investment. These
agreements aim to reduce tariffs and other
trade barriers, promoting economic
cooperation.

29. Process of Legislation in Pakistan
• The process of legislation in Pakistan involves
several steps that transform a proposed law
(bill) into an enforceable statute.
• This process is governed by the Constitution of
Pakistan, particularly Articles 50 to 63, which
outline the legislative framework for both the
National Assembly and the Senate.

30. 1. Types of Legislation
• 1.1 Ordinary Legislation
• Definition: Ordinary legislation refers to laws that
can be enacted by a simple majority in both
houses of Parliament (the National Assembly and
the Senate).
• Examples: Most laws, including those related to
civil rights, business regulations, and social
welfare, fall under this category.

31. • 1.2 Constitutional Amendments
• Definition: Constitutional amendments are changes
to the Constitution itself and require a more rigorous
process for approval.
• Requirements: Amendments must be passed by a
two-thirds majority in both houses of Parliament.

32. • 1.3 Money Bills
• Definition: Money bills pertain to taxation, public
expenditure, and borrowing.
• Procedure: Money bills can only be introduced in the
National Assembly and must be approved by the
National Assembly before being sent to the Senate.

33. 2. Steps in the Legislative Process
• 2.1 Drafting the Bill
• Initiation: The legislative process begins with
the drafting of a bill. A bill can be proposed by:
– Government Ministers: Most bills are introduced
by government ministers as part of the
government's legislative agenda.
– Private Members: Members of Parliament (MPs)
who are not part of the government can also
propose bills, known as private members' bills.

34. • Preparation: The bill is drafted with the
assistance of legal experts and relevant
government departments to ensure that it is
legally sound and addresses the intended
issues.

35. • 2.2 Introduction of the Bill
• Presentation: The bill is introduced in either
the National Assembly or the Senate. The
member presenting the bill must provide a
brief explanation of its purpose and
objectives.
• First Reading: The bill undergoes a first
reading, which is a formal stage where the
title of the bill is read out, and copies are
distributed to members. There is no debate at
this stage.

36. • 2.3 Committee Review
• Referral to Committee: After the first reading,
the bill is referred to a relevant parliamentary
committee for detailed examination.
Committees are specialized groups that focus
on specific areas, such as finance, law, or
health.

37. • Committee Deliberations: The committee
reviews the bill, holds hearings, and may invite
stakeholders to provide input. The committee
can suggest amendments to the bill based on
its findings.
• Committee Report: After deliberations, the
committee prepares a report that includes its
recommendations and any proposed
amendments to the bill.

38. • 2.4 Second Reading
• Debate: The bill is presented for a second
reading in the house where it was introduced.
Members debate the general principles and
provisions of the bill.
• Voting: After the debate, a vote is taken. If the
bill is approved, it moves to the next stage. If
rejected, the bill is discarded.

39. • 2.5 Consideration of Amendments
• Amendments: Members may propose further
amendments to the bill during this stage. Each
proposed amendment is debated and voted
on.
• Finalization: The bill is finalized with all
approved amendments incorporated.

40. • 2.6 Third Reading
• Final Debate: The bill is presented for a third
reading, where members debate the final
version of the bill.
• Final Vote: A vote is taken. If the bill passes, it
is sent to the other house (if it started in the
National Assembly, it goes to the Senate, and
vice versa).

41. • 2.7 Consideration in the Other House
• Repeat Process: The bill undergoes a similar
process in the other house, including readings,
committee review, and voting.
• Amendments: If the second house makes
amendments, the bill is sent back to the
originating house for consideration of those
amendments.

42. • 2.8 Joint Session (if necessary)
• Disagreement: If there is a disagreement
between the two houses regarding
amendments, a joint session of Parliament
may be convened to resolve the differences.
• Final Decision: The joint session votes on the
bill, and the decision of the majority prevails.

43. • 2.9 Presidential Assent
• Presidential Action: The President has three
options upon receiving the bill:
– Assent: If the President assents to the bill, it
becomes law and is published in the official
gazette. The law comes into effect as specified in
the bill, which may be immediate or at a later
date.

44. – Return for Reconsideration: The President can
return the bill, if it is not a money bill, with a
request for reconsideration. The Parliament may
then choose to amend the bill based on the
President's feedback or pass it again. If the bill is
passed again by a simple majority, the President is
obliged to give assent.
– Refusal to Assent: The President can refuse to
give assent to a bill. However, this is rare and
typically occurs in cases where the bill may conflict
with constitutional provisions or fundamental
rights.

45. • 2.10 Publication and Implementation
• Official Gazette: Once the President gives
assent, the law is published in the official
gazette of Pakistan. This publication is
essential for the law to be enforceable.
• Implementation: The relevant government
department or ministry is responsible for
implementing the new law. This may involve
drafting regulations, guidelines, or procedures
to ensure compliance with the law.

46. • 2.11 Review and Amendment
• Review Mechanism: After a law is enacted, it
may be subject to review and evaluation to
assess its effectiveness and impact. This can be
done through parliamentary committees or
government assessments.
• Amendments: If necessary, amendments to the
law can be proposed and go through the
legislative process again. This ensures that the
law remains relevant and effective in addressing
the issues it was designed to tackle.

47. Court Structure of Pakistan
1. Supreme Court of Pakistan
• 1.1 Overview
• Highest Court: The Supreme Court is the apex
court in Pakistan and serves as the final court
of appeal.
• Constitutional Role: The Supreme Court has
the authority to interpret the Constitution,
adjudicate disputes between provinces, and
hear cases involving the violation of
fundamental rights.

48. • 1.2 Jurisdiction
• Appellate Jurisdiction: The Supreme Court hears
appeals from the High Courts and, in some cases,
from lower courts. It has the discretion to grant or
deny leave to appeal.
• Original Jurisdiction: The Supreme Court has original
jurisdiction in cases involving the enforcement of
fundamental rights and disputes between provinces
or between the federal government and provinces.
• Advisory Jurisdiction: The Supreme Court can
provide advisory opinions to the President of
Pakistan on legal matters.

49. 2. High Courts
• 2.1 Overview
• Provincial Courts: Each province in Pakistan has its
own High Court, which serves as the highest court at
the provincial level. The High Courts are located in
major cities: Lahore (Punjab), Karachi (Sindh),
Peshawar (Khyber Pakhtunkhwa), and Quetta
(Baluchistan).
• Appellate and Original Jurisdiction: High Courts have
both appellate and original jurisdiction, allowing
them to hear appeals from lower courts and to
adjudicate certain cases directly.

50. • 2.2 Jurisdiction
• Appellate Jurisdiction: High Courts hear appeals
from District Courts and other lower courts. They
have the authority to review decisions and may
overturn or modify them.
• Original Jurisdiction: High Courts can hear cases
involving fundamental rights, constitutional matters,
and other significant legal issues.
• Supervisory Jurisdiction: High Courts have the power
to supervise and control the functioning of lower
courts within their jurisdiction.

51. 3. District Courts
• 3.1 Overview
• Trial Courts: District Courts are the primary
trial courts in Pakistan, handling a wide range
of civil and criminal cases.
• Hierarchy: District Courts are subordinate to
the High Courts and serve as the first point of
contact for most legal disputes

52. • 3.2 Jurisdiction
• Civil Jurisdiction: District Courts handle civil cases,
including family law, property disputes, and contractual
matters. They have the authority to grant remedies
such as injunctions, damages, and specific
performance.
• Criminal Jurisdiction: District Courts also hear criminal
cases, including serious offenses. They have the
authority to impose penalties, including imprisonment
and fines.
• Sessions Jurisdiction: In criminal matters, the District
and Sessions Judge has the authority to conduct trials
for serious offenses, such as murder and robbery.

53. 4. Special Courts and Tribunals
• 4.1 Overview
• Specialized Jurisdictions: Pakistan has
established various special courts and
tribunals to handle specific types of cases.
These courts are designed to expedite the
resolution of disputes in specialized areas of
law.

54. • 4.2 Types of Special Courts
• Anti-Terrorism Courts: These courts deal with cases
related to terrorism and related offenses. They operate
under the Anti-Terrorism Act, 1997, and have the
authority to conduct speedy trials.
– Jurisdiction: These courts are specifically established
to deal with offenses related to terrorism, including
acts of terrorism, sectarian violence, and organized
crime. They operate under the Anti-Terrorism Act,
1997.

55. • Family Courts:
– Jurisdiction: Family Courts are established to
handle matters related to family law, including
marriage, divorce, child custody, maintenance,
and inheritance. They aim to provide a more
accessible and sensitive environment for resolving
family disputes.

56. • Environmental Courts:
– Jurisdiction: Environmental Courts are set up to
address cases related to environmental
protection, pollution control, and violations of
environmental laws. They aim to enforce
environmental regulations and promote
sustainable development.

57. • Banking Courts:
– Jurisdiction: Banking Courts handle disputes
related to banking transactions, recovery of loans,
and enforcement of banking laws. They provide a
specialized forum for resolving financial disputes
efficiently.
– Regulatory Framework: These courts operate
under the Financial Institutions (Recovery of
Finances) Ordinance, 2001, and are designed to
expedite the resolution of banking-related cases.

58. • Narcotics Courts:
– Jurisdiction: Narcotics Courts are established to
deal with offenses related to drug trafficking and
the possession of illegal substances. They operate
under the Control of Narcotic Substances Act,
1997.

59. • Consumer Courts:
– Jurisdiction: Consumer Courts are established to
protect the rights of consumers and address
grievances related to unfair trade practices,
defective goods, and inadequate services. They
operate under the Consumer Protection Act.

60. • Military Courts:
– Jurisdiction: Military Courts are established to try
offenses related to military personnel and certain
serious crimes, particularly those involving
terrorism and national security. They operate
under the Pakistan Army Act and other relevant
laws.
– Special Procedures: Military Courts have their
own procedures and are designed to ensure swift
justice in cases that threaten national security.