1. The document discusses various types of companies under corporate law in Pakistan including listed vs unlisted companies, public vs private companies, limited by share vs limited by guarantee, public vs single member companies, public companies vs joint ventures, and limited by guarantee vs joint ventures. 2. The key differences between each type of company are explained such as membership requirements, ability to invite public subscription, filing of accounts and reports, and liability of members. 3. Examples are provided for each type of company to illustrate the concepts discussed.

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2. Corporate Law
2
Mid Term Project
Presentation on Difference of Companies
Subject: Corporate Law
MBA-4th Semester
Professor: Hafiz Javed
Group Member:
Hina Shaheen
Faizan Akhtar
Faisal Saeed
Adeel Ahmad

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Difference Between Companies Ordinance 1984
Listed and Unlisted Company
Public and private Company
Limited by share and limited by Guarantee
Public and Single Member Company
Public Company and Joint Venture
Limited by Guarantee and joint venture

4. Listed vs. Unlisted Company
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5. Difference between Listed And
Unlisted Company
Listed Company:
 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.
Example: ICI Limited, Habib Bank limited,
Unlisted Company:
 Unlisted 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.
Example: Pakistan Steel Mill Limited.
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6. Difference between Listed And
Unlisted Company
Listed Company
 A public listed company has
actually obtained subscription
from the public.
 A listed public company should
have at least seven members.
 A listed company is required to
file prospectus and declaration on
from 22 for obtaining certificate
for commencement of business.
Unlisted Company
 A public unlisted company can
invite subscription from the
public.
 An unlisted public company
should have at least three
members.
 An unlisted public company is
required to file statement is lieu
of prospectus and declaration on
from 23 for obtaining certificate
for commencement of business.
6

7. Difference between Listed And
Unlisted Company
Listed Company
 A listed public company is
required to file its accounts with
the commission and the registrar.
 Beneficial ownership of listed
company is controlled and
reported.
 Minimum number of members
should be seven.
Unlisted Company
 An unlisted public company is
required to file its accounts with
the registrar only.
 No such restriction on unlisted
public company.
 Minimum number of members
should be three.
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8. Difference between Listed And
Unlisted Company
Listed Company
 Quorum for a general meeting of
a listed company is ten members
present is person having 25%
voting power of their own
account or through proxies.
 A listed company prepares its
accounts in accordance with
fourth schedule and
IASs.(International Accounting
Standard)
Unlisted Company
 Quorum for a general meeting of
an unlisted company is two
members present is person
having not less than 25% voting
power of their own account or
through proxies.
 An unlisted company prepares its
accounts in accordance with fifth
schedule and IASs.
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9. Difference between Listed And
Unlisted Company
Listed Company
 Appointment of whole time
qualified company secretary is
mandatory.
 News paper publication of notice
is required.
Unlisted Company
 Appointment of whole time
qualified company secretary is
not mandatory.
 News paper publication of notice
is not required.
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10. Public vs. Private company
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11. Difference between Public And Private
Company
Public Company:
 A company whose shares are publicly traded and are usually held by a large
number (hundreds or thousands) of shareholders.
 The usual term is public limited company. A government owned company such
as an airline or public transit company.
Example: WAPDA, Pakistan Air Line, PTCL, SNGPL,
Private Company:
 Business firm in the private (non-public) sector of an economy, controlled and
operated by private individuals (and not by civil servants or government
employees). Used also as an alternative term for private limited company.
Example: Habib Bank, Tapal pvt Ltd, 11

12. Difference between Public And Private
Company
Public Company
 A public company can invite
subscription from the public.
 A public company does not have
restriction on transfer of share.
 A public company should have at
least seven members.
 There is no restriction on upper
limit of the members.
 A public company is required to
file its account with the registrar.
Private Company
 A private company cannot invite
subscription.
 Transfer of share is restricted in a
private company.
 A private company should have at
least two members.
 Maximum members cannot
exceed 50 members.
 Filing of account is not required
by a private company.
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13. Difference between Public And Private
Company
Public Company
 Quorum for a general , meeting of
a public company is two members
present in person having not less
than 25% voting power of their
own account or through proxies,
however, quorum in case of listed
company, shall be ten members
present in a person having voting
power as aforesaid.
 A public company is required to
file statutory report.
Private Company
 Quorum for a general meeting of
a private company is two
members is present in person
having not less than 25% voting
power of their own account or
through proxies. However,
quorum in case of SMC is
presence of the sole member
personally or through proxy.
 A private company is not required
to file statutory report.
13

14. Difference between Public And Private
Company
Public Company
 A public company is required to
hold a statutory meeting once in
its life.
 A public company is required to
file prospectus or statement in
lieu of prospectus for obtaining
certificate for commencement of
business.
 A public company has to raise
minimum subscription before
obtaining certificate for
commencement of business.
Private Company
 A private company is not required
to hold a statutory meeting.
 There is no requirement of filing
of prospectus or statement of lieu
of prospectus by a private
company expect when a private
company convert into a public
company.
 There is no requirement to raise
minimum subscription by a
private company.
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15. Difference between Public And Private
Company
Public Company
 A public company is required to
file its account with the registrar.
 Auditor’s Qualification is
prescribed as chartered
accountant.
 Beneficial ownership of listed
public company is controlled and
reported.
Private Company
 Filing of account is not required
by a private company.
 No Qualification is prescribed for
an auditor of a private company
expect when it has paid up
capital exceeding Rs. 3 million.
 No reporting of beneficial
ownership is required.
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Limited by Share vs. Guarantee

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Difference between limited by Share
And limited by Guarantee Company
Company Limited by Share:
 A company in which the liability of members is limited up to face value of their
share is called company Limited by share.
Example: Habib bank Ltd, Allied Bank Ltd, Habib sugar mil, Packeges Ltd lahore
Company Limited by Guarantee:
 A company in which member, give a guarantee to contribute a specific amount
to the assets of company on it winding up.

Example: Karachi Stock Exchange, Lahore Stock Exchange, Islamabad
Stock exchange,

18. Difference between Limited by Share
And Limited by Guarantee
Limited by Share
 Companies limited by shares are
more popular.
 In case of companies limited by
shares, shares are held by the
shareholders of the company.
 Companies limited by shares are
profit making organizations.
Limited by Guarantee
 Companies limited by guarantee
are not so popular.
 In case of company Ltd. by
guarantee there is no shares, the
company having members who
acts as a guarantor.
 Companies limited by guarantee
are non-profitable organizations;
they are specially designed for
charitable purposes.
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19. Difference between Limited by Share
And Limited by Guarantee
Limited by Share
 A company limited by shares may
be divided into private and public
companies.
 Capital can be raised by selling
shares in the company.
 A company limited by shares
having share capital because of
issuing shares.
Limited by Guarantee
 A company limited by guarantee
is a public company.
 Capital can be raised by issuing
debentures in the company.
 A company limited by guarantee
having no share capital because
of no issuing of shares.
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20. Difference between Limited by Share
And Limited by Guarantee
Limited by Share
 In a company limited by shares,
there may be different classes of
shares.
 A private company limited by
shares is owned by its members
(called shareholders). Each
member’s liable for the original
value of the shares they were
issued but didn’t pay for.
Limited by Guarantee
 It is possible to have different
classes of members in a
guarantee company. There may
be non-voting members.
 A private company limited by
guarantee means the members of
the company financially back it
up to an agreed amount. Its
members aren’t called
shareholders.
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21. Difference between Limited by Share
And Limited by Guarantee
Limited by Share
 Companies limited by shares can
engage in legal trades and have
general clauses.
 Companies limited by shares have
very general clauses that give
them liberty to engage in any
legal trade or business activity.
Limited by Guarantee
 There is no share capital in case
of companies limited by
guarantee and it also has self
imposed restrictions.
 Companies limited by guarantee
have specific clauses and rules
dictating their areas of operation.
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Public vs. Single Member

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Public Company:
 A company whose shares are publicly traded and are usually held by a large number
(hundreds or thousands) of shareholders.
 The usual term is public limited company. A government owned company such as an
airline or public transit company.
Example: WAPDA, Pakistan Air Line, PTCL, SNGPL,
Single Member Company:
 The SECP, of Pakistan introduced the concept of single member company through
amended ordinance 2002 (SMC Rule 2003) in Pakistan company ordinance 1984,
 A single member company can be defined as a company with only one member, also
referred to as the shareholder. A company may be formed as a single member
company or may become a single member company following a share transfer
whereby the number of shareholders is reduced to one.
Example: Pearl consultancy(SMC-pvt ltd.)
Difference between Public And Single
Member Company

24. Difference between Public And Single
Member Company
Public Company
 A public company does not have
restriction on transfer of share.
 A Public company is required to
obtain certificate for
commencement of business.
 A public company has to raise
minimum subscription before
obtaining certificate for
commencement of business.
Single Member Company
 Transfer of shares is restricted and
shall be at the will of single
member only.
 A (SMC) company is not required to
obtain certificate for
commencement of business and it
can commence business just after
its incorporation.
 There is no requirement to raise
minimum subscription by a (SMC)
company.
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25. Difference between Public And Single
Member Company
Public Company
 A public company has to raise
minimum subscription.
 A public company is required to
file prospectus or statement in
lieu of prospectus for obtaining
certificate for commencement of
business.
 Quorum for a general , meeting of
a public company is two members
present in person having not less
than 25% voting power of their
own account or through proxies.
Single Member Company
 There is no requirement to raise
minimum subscription by a (SMC).
 There is no requirement of filing
of prospectus or statement in lieu
of prospectus by a (SMC).
 Quorum is one person present
personally or through proxies in
case of single member company.
25

26. Difference between Public And Single
Member Company
Public Company
 A public company is required to
file statutory report.
 A public company is required to
hold a statutory meeting once in
its life.
 Chief executive of company
cannot engage in a competitive
business.
 Auditor’s Qualification is
prescribed as chartered
accountant.
Single Member Company
 A Single member company is not
required to file statutory report.
 A Single member company is not
required to hold a statutory
report.
 No restriction is imposed on the
business of a chief executive.
 No Qualification is prescribed for
an auditor of a single member
company. 26

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Public Company vs. joint venture

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Public Company:
 A company whose shares are publicly traded and are usually held by a
large number (hundreds or thousands) of shareholders.
 The usual term is public limited company. A government owned
company such as an airline or public transit company.
Example: WAPDA, Pakistan Air Line, PTCL, SNGPL, PEL,
Joint Venture:
 A business arrangement in which two or more parties agree to pool
their resources for the purpose of accomplishing a specific task. This
task can be a new project or any other business activity. In a joint
venture (JV), each of the participants is responsible for profits, losses
and costs associated with it.
Example: Honda Atlas Cars, Pak Chine Investment Company,
Difference between Public listed
Company and joint venture

29. Difference between Public listed
Company and joint venture
Public listed Company
 A public listed company has
actually obtained subscription
from the public.
 A public company does not have
restriction on transfer of shares.
 A listed public company should
have at least seven members.
Joint venture
 There is no subscription from the
joint venture parties when
agreed may form a joint venture.
 In case of Joint Venture, the
shares of the companies are not
transferrable to general public.
 In case of joint Venture, there
are almost two or more persons.
29

30. Difference between Public listed
Company and joint venture
Public listed Company
 There is no restriction on upper
limit of the members public listed
company.
 A public company has to seek
certificate for the
commencement of business.
 A Public company is required to
file statutory report.
Joint venture
 There are almost two or more
persons in the joint venture
business.
 There is no certificate of
commencement of this business
this business is established at any
time.
 There is no preparation of
statutory report in case of joint
venture.
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31. Difference between Public listed
Company and joint venture
Public listed Company
 Without the permission of the
Government the Public listed
company cannot be dissolved.
 There is a partner in case of
public listed company.
 A Public listed company may be
formed for short term or long
term periods.
 It always bears a first name.
Joint venture
 In case of Joint Venture, the
business is dissolved when the
venture is completed.
 The participants in joint venture
are called as co-ventures.
 It is temporary in nature and is
terminated as soon as the
venture is completed.
 It does not need any single name
to carry on the activity.
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Limited by Guarantee vs. joint venture

33. 33
Company Limited by Guarantee:
A company in which member, give a guarantee to contribute a
specific amount to the assets of company on it winding up.
Example: Karachi Stock Exchange, Lahore Stock Exchange, Islamabad
Stock exchange,
Joint Venture:
A business arrangement in which two or more parties agree to pool
their resources for the purpose of accomplishing a specific task. This
task can be a new project or any other business activity. In a joint
venture, each of the participants is responsible for profits, losses
and costs associated with it.
Example: Honda Atlas Cars, Pak Chine Investment Company
Difference between Company Limited
by Guarantee and joint venture

34. Difference between Company Limited by
Guarantee and joint venture
limited by Guarantee
 There is one director, a secretary,
and a declaring at the time of
coming into existence.
 A company limited by guarantee
is non-profitable organizations.
 In case of companies limited by
guarantee members are called
shareholders of the company.
Joint Venture
 In case of joint Venture, there
are almost two or more persons.
 Joint Venture is a business
designed for profitable purposes.
 The participants in joint venture
are called as co-ventures.
34

35. Difference between Company Limited by
Guarantee and joint venture
Limited by Guarantee
 Company limited by guarantee
must be incorporated as public
company, and is required to
include the word “Limited” or
the abbreviation “Ltd” at the end
of the company’s name.
 There is a compulsion of getting
certificate of commencement in
case of company limited by
guarantee.
Joint venture
 There is no such restriction in
case of Joint Venture.
 There is no certificate of
commencement of this business
this business is established at any
time.
35

36. Difference between Company Limited by
Guarantee and joint venture
Limited by Guarantee
 There is a compulsion of
statutory report in case of
company limited by guarantee.
 The companies limited by
guarantee may be liquidated
when the guarantee of the
shareholders is completed.
 Capital can be raised by issuing
debentures.
Joint venture
 There is no preparation of
statutory report in case of joint
venture.
 In case of Joint Venture, the
business is dissolved when the
venture is completed.
 Capital can be raised by investing
money, time and effort.
36

37. Difference between Company Limited
by Guarantee and joint venture
Limited by Guarantee
 Company is established for long
term and short time period until
the liability of the shareholders is
completed.
 It always bears a first name.
Joint venture
 It is temporary in nature and is
terminated as soon as the
venture is completed.
 It does not need any single name
to carry on the activity.
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