The promoters of Silk Textile Manufacturing Company went through the promotion and incorporation stages to establish the new company. In the promotion stage, they decided on the company name and structure. In the incorporation stage, they submitted documents like the Memorandum of Association and Articles of Association to the registrar and received a Certificate of Incorporation. After issuing a prospectus and fulfilling subscription requirements, they received a Certificate of Commencement allowing the company to begin operations.

1. SILK TEXTILE MANUFACTURING
COMPANY

3. PROMOTION STAGE
The idea of the company was introduced by
the promoters. First, the preliminary
investigation and assembling of resources was
made. Then, preliminary expenses were
estimated. “Silk Textile Manufacturing” was
decided as the name of the company. It was
decided that it’ll be manufacturing public
company. After this, promoters started the
preparation of essential documents for the
formation of company.

4. INCORPORATION STAGE
Registration form was filled by the
promoters of the company and submitted to the
registrar along with the registration fee.
Memorandum of Association, Articles of
Association, List of Directors and their written
consent, Declaration of qualifying shares,
prospectus and Statutory Declaration was
submitted to the registrar.

5. CONTENTS
• NAME CLAUSE: The name of company is Textile Manufacturing
Company.
• HEAD OFFICE: The head office of the company is situated in
Lahore.
• CAPITAL CLAUSE: The total capital of the firm is
50,000(10rs.each share)
• LIABBILITY CLAUSE: The liability of member is limited.
• OBJECTIVE CLAUSE: The type of the business is manufacturing
company and it is public company.
• ASSOCIATION CLAUSE: All the promoters agreed to work for
the better prospects.

6. ARTICLES OF ASSOCIATION
CONTENTS
• Total capital is 50,00,000 (divided into 10rs per share).
• Shares are transferable.
• External auditors will be hired for the audit of accounts.
• Profit will be distributed according to the value of shares purchased
by the each shareholder.
• There is no limit on the maximum number of directors.
• All members will work for the common seal of the company.
• Meetings will be held by sending notice to all the directors.
• Voting power is assigned to each director of the company.
• Shares can be converted into stock.
• Voting power is assigned to all the directors.
• Sale of shares will be made by issuing prospectus.

7. PROSPECTUS
CONTENTS
• The object of the company is textile manufacturing.
• It is public company.
• Head office is located in Lahore (27 B block, Johar Town LHR).
• The liability of the members is unlimited.
• Shares will be sold at its par value.
• Dividends will be paid according to the value of shares purchased.
• Business contracts will be made by consent of all the directors.
• Shares of the company are transferable.
• Commission to the underwriters will be paid.
• Estimated preliminary expenses are 120,00000.
• Chartered Accountants will be hired for the audit of accounts.
• Remuneration will be paid.

8. VERIFICATION
After the verification by the registrar,
of the submitted information. He
issued Certificate of Incorporation.

9. CERTIFICATE OF
COMMENCEMENT
After getting the Certificate of
Incorporation, promoters issued the
prospectus of the company to the general
public. After filling the requirement of
minimum subscription and allotment of
shares, Certificate of Commencement was
issued. Now the company was formed and
ready to start its business.