Companies Ordinance 1984 New Syllabus

8/20/2019 Companies Ordinance 1984 New Syllabus

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Index

IndexIndex

Index i

Part 1 – Preliminary 11. Short title, extent and commencement..................................................1

2. Defnitions.............................................................................................1

3. Meaning o “s!sidiary" and “holding com#any"$..................................%

Part 3 &Secrities and 'xchange (ommission o Pa)istan *12. Po+ers and nctions o the (ommission.............................................*

Part &Incor#oration o (om#anies and Matters Incidental -hereto

Memorandm o /ssociation...................................................1%. Mode o orming a com#any................................................................

1*. Memorandm o com#any limited !y shares.......................................

1. Memorandm o com#any limited !y garantee..................................0

10. Memorandm o nlimited com#any...................................................0

1. Printing, signatre, etc. o memorandm$............................................

2. estriction on alteration o memorandm$...........................................

21. /lteration o memorandm$.................................................................

22. Po+er o (ommission +hen confrming alteration................................1

23. 'xercise o discretion !y (ommission..................................................1

2. Procedre on confrmation o the alteration.........................................11

2%. '4ect o ailre to register +ithin days............................................11

/rticles o /ssociation..............................................................122*. egistration o articles.........................................................................12

5eneral Pro6isions 7ith es#ect -o egistration o Memorandm and

/rticles....................................................................................133. egistration o memorandm and articles, etc....................................13

31. '4ect o memorandm and articles.....................................................13

32. '4ect o registration$...........................................................................1

33. (onclsi6eness o certifcate o incor#oration......................................1

3. '4ect o alteration in memorandm or articles....................................1

3%. (o#ies o memorandm and articles to !e gi6en to mem!ers.............1

3*. /lterations o memorandm or articles to !e noted in e6ery co#y.......1

Pro6isions 7ith es#ect -o 8ames o (om#anies....................1%3. Prohi!ition o certain names................................................................1%

30. ectifcation o name o a com#any.....................................................1%

3. (hange o name !y a com#any$...........................................................1%

1


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Index

. egistration o change o name and e4ect thereo$.............................1*

1. /lteration o names on commencement o 9rdinance and change o stats o

com#any................................................................................................ 1*

/ssociations 8ot :or Proft.......................................................12. Po+er to dis#ense +ith “;imited" in the name o chari table and other com#anies

.............................................................................................................. 1

(om#anies ;imited !y 5arantee...........................................13. Pro6ision as to com#anies limited !y garantee..................................1

Part %& Pros#ects, /llotment, Isse and -ranser o Shares and

De!entres, De#osits, 'tc. 10

Pros#ects...............................................................................10%2. Pros#ects to !e dated........................................................................10

%3. Matters to !e stated and re#orts to !e set ot in #ros#ects...............10%. 'x#ert to !e nconnected +ith ormation or management o com#any 2

%%. 'x#ert


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Index

Part 0 &Management and /dministration egistered o?ce, P!lication

o 8ames, 'tc 3112. egistered o?ce o com#any.............................................................31

13. P!lication o name !y a limited com#any.........................................31

1. Penalties or non!lication o name................................................32

1%. P!lication o athorised as +ell as #aid&# ca#ital...........................32

(ommencement o @siness !y a P!lic (om#any.................331*. estrictions on commencement o !siness......................................33

Meetings and Proceedings.......................................................31%. Stattory meeting o com#any..........................................................3

1%0. /nnal general meeting.....................................................................3*

1%. (alling o extraordinary general meeting...........................................3*

1*. Pro6isions as to meetings and 6otes..................................................30

1*/. (ircmstances in +hich #roceedings o a general meeting may !e declaredin6alid....................................................................................................

1*1. Proxies...............................................................................................

1*2. e#resentation o cor#orations at meetings o com#anies and o creditors

.............................................................................................................. 1

1*3. e#resentation o :ederal 5o6t., etc., at meetings o com#anies.......1

1*. 8otice o resoltion............................................................................2

1*%. >oting to !e !y sho+ o hands in frst instance..................................2

1**. (hairman


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Index

10%. >alidity o acts o directors.................................................................

10*. Penalties............................................................................................%

10. Ineligi!ility o certain #ersons to !ecome director.............................%

100. >acation o o?ce !y the directors......................................................%

10. Penalty or nBalifed #erson acting as director, etc........................%1

1. Ineligi!ility o !an)r#t to act as director, etc....................................%1

11. estriction on director


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Index

/ditors...................................................................................2%2. /##ointment and remneration o aditors.......................................

2%3. Pro6ision as to resoltions relating to a##ointment and remo6al o aditors

.............................................................................................................. 1

2%. Califcation and disBalifcation o aditors.....................................2

2%%. Po+ers and dties o aditors............................................................3

2%*. eading and ins#ection o aditors< re#ort.........................................2%. Signatre on adit re#ort, etc............................................................

%


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Index

Part 1 – PreliminaryPart 1 – Preliminary

1. Short title, extent and commencement

1E -his 9rdinance may !e called the Companies Ordinance, 1984.

2E It extends to the +hole o Pa)istan.3E This section shall come into orce at once and the remaining #ro6isions o this

9rdinance shall come into orce on sch date as the :ederal 5o6t. may, !y

notifcation in the o?cial 5aFette, a##oint, and di4erent dates may !e so

a##ointed or di4erent #ro6isions.

2. Defnitions1E In this 9rdinance, nless there is anything re#gnant in the s!Aect or context,&&

1E “articles" means the articles o association o a com#any as originally ramed or as

altered in accordance +ith the #ro6isions o any #re6ios (om#anies /ct, or o this

9rdinance, inclding, so ar as they a##ly to the com#any, the reglations

contained in Table A in the First ScheduleG

2E “associated com#anies" and “associated nderta)ings" mean any t+o or more

com#anies or nderta)ings, or a com#any and an nderta)ing, interconnected +ith

each other in the ollo+ing manner, namely

iE I a #erson +ho is the o+ner or a #artner or director o a com#any or

nderta)ing, or +ho, directly or indirectly, holds or controls shares carrying not

less than 2H o the 6oting #o+er in sch com#any or nderta)ing, is also the

o+ner or #artner or director o another com#any or nderta)ing, or, directly or

indirectly, holds or controls shares carrying not less than 2H o the 6oting

#o+er in that com#any or nderta)ingG or

iiE i the com#anies or nderta)ings are nder common management or control or

one is the s!sidiary o anotherG or

iiiE i the nderta)ing is modara!a managed !y the com#anyG

and a #erson +ho is the o+ner o or a #artner or director in a com#any or

nderta)ing or, +ho so holds or controls shares carrying not less than 1H o the

6oting #o+er in a com#any or nderta)ing, shall !e deemed to !e an “associated

#erson" o e6ery sch other #erson and o the #erson +ho is the o+ner o or a

#artner or director in sch other com#any or nderta)ing, or +ho so holds or

controls sch shares in sch other com#any or nderta)ing$

Provided that shares shall !e deemed to !e o+ned, held or controlled !y a #erson i

they are o+ned, held or controlled !y that #erson or !y the s#ose or minor

children o the #erson$

Provided further that-iE directorshi# o a #erson or #ersons !y 6irte o nomination !y the :ederal 5o6t. or

a Pro6incial 5o6t. or a fnancial instittion directly or indirectly o+ned or controlled

!y sch 5o6t.G or

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iiE shares o+ned !y the 8ational In6estment -rst or the In6estment (or#oration o

Pa)istan or a fnancial instittion directly or indirectly o+ned or contro1led !y the

:ederal 5o6t. or a Pro6incial 5o6t. or shares registered in the name o a central

de#ository, +here sch shares are !enefcially o+ned !y the central de#ository.

shall not !e ta)en into accont or determining the stats o a com#any, nderta)ing

or #erson as an associated com#any, associated nderta)ing or associated #ersonG

3E “/thority" means the (or#orate ;a+ /thority constitted nder section 11G

E “!ody cor#orate" or “cor#oration" incldes a com#any incor#orated otside

Pa)istan, !t does not inclde&

iE a cor#oration soleG oriiE a co&o#erati6e society registered nder any la+ relating to the registration o

co&o#erati6e societies$ or

iiiE any other !ody cor#orate, not !eing a com#any as defned in this 9rdinance,

+hich the :ederal 5o6t. may !y notifcation in the o?cial 5aFette s#eciy in

this !ehal.

%E “!oo) and #a#er", “!oo) or #a#er" or “!oo)s o acconts" inclde acconts, deeds,

6ochers, registers, +ritings and docmentsG

%/E “central de#ository" means a central de#ository as defned in clause (cc) of section

o the Securities and !"chan#e Ordinance, 19$9 and registered +ith the (ommission

nder section %A o that 9rdinance.

*E “chie execti6e", in relation to a com#any means an indi6idal +ho, s!Aect to the

control and directions o the directors, is entrsted +ith the +hole, or s!stantially

the +hole, o the #o+ers o management o the a4airs o the com#any, and

incldes a director or any other #erson occ#ying the #osition o a chie execti6e,

!y +hate6er name called, and +hether nder a contract o ser6ice or other+iseG

*/E “(ommission" means the Securities and !"chan#e Commission of &a'istan esta!lished

nder section % o the Securities and !"chan#e Commission of &a'istan Act, 199 G

E “com#any" means a com#any ormed and registered nder this 9rdinance or an

existing com#anyG

0E “com#any limited !y shares" means a com#any ha6ing the lia!ility o its mem!ers

limited !y the memorandm to the amont, i any n#aid on the shares

res#ecti6ely held !y themG

E “com#any limited !y garantee" means a com#any ha6ing the lia!ility o its

mem!ers limited !y the memorandm to sch amont as the mem!ers may

res#ecti6ely there!y nderta)e to contri!te to the assets o the com#any in the

e6ent o its +inding #G

1E 9mitted !y an'in# * Financial Ser+ices (Amendment of a-s) Ordinance, 1984

11E “the (ort" means the (ort ha6ing Arisdiction nder this 9rdinanceG

12E “de!entre" incldes de!entre stoc), !onds, term fnance certifcates and any

other secrities, other than a share, o a com#any, +hether constitting a charge

on the assets o the com#any or notG

2


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13E “director" incldes any #erson occ#ying the #osition o a director, !y +hate6er

name calledG

1E “docment" incldes smmons, notice, reBisition, order, other legal #rocess,

6ocher and registerG

1%E “existing com#any" means a com#any ormed and registered nder the #re6ios

(om#anies /ctG

1%/E “fnancial instittion" incldes,–

aE a com#any or an instittion +hether esta!lished nder any s#ecial enactment

and o#erating +ithin or otside Pa)istan +hich transacts the !siness o !an)ing

or any associated or ancillary !siness throgh its !ranchesG

!E a modara!a, leasing com#any, in6estment !an), 6entre ca#ital com#any,

fnancing com#any, hosing fnance com#any, a non&!an)ing fnance com#anyG

and

cE sch other instittion or com#anies athorised !y la+ to nderta)e any similar

!siness, as the :ederal 5o6t. may, !y notifcation in the o?cial 5aFette, s#eciy

or the #r#oseG

1*E “fnancial year" in relation to any!ody cor#orate, means the #eriod in res#ect o

+hich any #roft and loss accont or the income and ex#enditre accont, as the

case may !e, o the !ody cor#orate, laid !eore it in general meeting, is made #,

+hether that #eriod is a year or notG

1E “orm" means a orm set ot in any o the schedles or #rescri!edG

10E “holding com#any" means a holding com#any as defned in section %G

1E “listed", in relation to secrities, means secrities +hich ha6e !een allo+ed to !e

traded on a stoc) exchangeG

2E “listed com#any" means a com#any or a !ody cor#orate or other !ody +hose

secrities are listedG

21E “mem!er" means,

in relation to a com#any ha6ing share ca#ital,

a s!scri!er to the memorandm o the com#any and e6ery #erson to +hom is

allotted, or +ho !ecomes the holder o any share, scri# or other secrity +hichgi6es him a 6oting right in the com#any and

J +hose name is entered in the register o mem!ers, and,

J in relation to a com#any not ha6ing a share ca#ital,

any #erson +ho has agreed to !ecome a mem!er o the com#any and

J +hose name is so enteredG

22E “memorandm" means the memorandm o association o a com#any as

originally ramed or as altered rom time to time in #rsance o the #ro6isions oany #re6ios (om#anies /ct or o this 9rdinanceG

23E “modara!a" and “modara!a com#any" ha6e the same meaning as in the

.odaraba Companies and .odaraba (Floatation and Control) Ordinance, 198/G

3


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Index

2E “o?cer" incldes any director, chie execti6e, managing agent, secretary or other

execti6e o the com#any, ho+soe6er designated, !t, sa6e in

sections /0, / to 4, $/, $1, $8, %01, %0, 41, 41, 418, 44 and 48, does not inclde

an aditorG

2%E “#artici#atory redeema!le ca#ital" means sch redeema!le ca#ital as is entitled to

#artici#ate in the #roft and loss o a com#anyG

2*E “#rescri!ed" means, &

aE as res#ects the #ro6isions o this 9rdinance relating to the +inding # o

com#anies and other matters reBiring to !e determined or decided !y the

(ort, #rescri!ed !y rles made !y the S#reme (ort in consltation +ith the

Kigh (ort or, +here the S#reme (ort ad6ises the :ederal 5o6t. to do so, !y

the :ederal 5o6t. in consltation +ith the Kigh (ortG and

!E as res#ects the other #ro6isions o this 9rdinance, #rescri!ed !y rles or

reglations made !y the :ederal 5o6t. ater #re6ios #!lication in the o?cial

5aFetteG

2E “Pre6ios (om#anies /ct" incldes any /ct or /cts relating to com#anies in orce

!eore the ndian Companies Act, 18$$ , or the /cts re#ealed there!y, the

ndian Companies Act, 18$$ , the ndian Companies Act, 188, the ndian Companies Act, 191%,

or any la+ corres#onding to any o those /cts and in orce in any o the territories

no+ constitting Pa)istan !eore the extension o the Companies Act, 191%, to sch

territoriesG

20E “#ri6ate com#any" means a com#any +hich, !y its articles,&

iE restricts the right to transer its shares, i anyG

iiE limits the nm!er o its mem!ers to % not inclding #ersons +ho are in the

em#loyment o the com#anyG and

iiiE #rohi!its any in6itation to the #!lic to s!scri!e or the shares, i any or

de!entres o the com#anyG

Provided that, +here t+o or more #ersons hold one or more shares in a com#any

Aointly, they shall, or the #r#oses o this defnition, !e treated as a single

mem!erG

2E “#ros#ects" means any docment descri!ed or issed as #ros#ects, and

incldes any notice, circlar, ad6ertisement, or other commnication, in6iting

o4ers rom the #!lic or the s!scri#tion or #rchase o any shares in, or

de!entres o a !ody cor#orate, or in6iting de#osits rom the #!lic, other than

de#osits in6ited !y a !an)ing com#any or a fnancial instittion a##ro6ed !y the

:ederal 5o6t., +hether descri!ed as #ros#ects or other+iseG

3E “#!lic com#any" means a com#any +hich is not a #ri6ate com#anyG


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Index

3&/E “redeema!le ca#ital" incldes fnance o!tained on the !asis o Partici#ation

-erm (ertifcate P-(E, Mshari)a (ertifcate, -erm :inance (ertifcate -:(E, or any

other secrity or o!ligation not !ased on interest, other than an ordinary share o a

com#any, re#resenting an instrment or a certifcate o s#ecifed denomination,

called the ace 6ale or nominal 6ale, e6idencing in6estment o the holder in the

ca#ital o the com#any on terms and conditions o the agreement or the isse o

sch instrment or certifcate or sch other certifcate or instrment as the :ederal5o6t. may, !y notifcation in the o?cial 5aFette, s#eciy or the #r#oseG

31E “registrar" means a registrar, an additional registrar, a Aoint registrar, a de#ty

registrar or an assistant registrar, #erorming nder this 9rdinance the dty o

registration o com#aniesG

32E “schedled !an)" has the same meaning as in the State an' of &a'istan Act, 190$ G

33E “secretary" means any indi6idal a##ointed to #erorm the secretarial,

administrati6e or other dties ordinarily #erormed !y the secretary o a com#anyG

3E “secrity" means any share, scri#, de!entre, #artici#ation term certifcate,

modara!a certifcate, mshari)a certifcate, term fnance certifcate, !ond, #re&

organiFation certifcate or sch other instrment as the :ederal 5o6t. may, !y

notifcation in the o?cial 5aFette, s#eciy or the #r#oseG

3%E “share" means share in the share ca#ital o a com#anyG

3*E “s#ecial resoltion" means a resoltion +hich has !een #assed !y a maAority o

not less than three&orths o sch mem!ers entitled to 6ote as are #resent in

#erson or !y #roxy at a general meeting o +hich not less than 21 days notices#eciying the intention to #ro#ose the resoltion as a s#ecial resoltion has !een

dly gi6enG

Provided that, i all the mem!ers entitled to attend and 6ote at any sch meeting so

agree, a resoltion may !e #ro#osed and #assed as a s#ecial resoltion at a

meeting o +hich less than 21 days notice has !een gi6enG

3E “stoc) exchange" means a stoc) exchange registered nder the

Securities and !"chan#e Ordinance, 19$9

30E “s!sidiary com#any" or “s!sidiary" means a s!sidiary com#any as defned in

section %G

3E “Table A" means Table A in the First Schedule.

2E the ex#ression “commencement o this 9rdinance" in any #ro6ision o this

9rdinance means the coming into orce o that #ro6ision !y 6irte o a

notifcation nder sub2section (%) of Section 1.

E 9mitted !y the an'in# * Financial Ser+ices (Amendment of a-s) Ordinance, (1984).

%


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Index

3. Meaning o “s!sidiary" and “holding com#any"$1E :or #r#oses o this 9rdinance, a com#any or !ody cor#orate shall !e deemed to

!e a s!sidiary o another i$

aE that other com#any or !ody cor#orate , directly , or indirectly controls,

!enefcially o+ns or holds more than %H o its 6oting secrities or other+ise

has #o+er to elect and a##oint more than %H o its directorsG or

!E the frst mentioned com#any or !ody cor#orate is a s!sidiary o any com#any

or !ody cor#orate +hich is that other


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Index

Part 3 &Secrities and 'xchange (ommission o Part 3 &Secrities and 'xchange (ommission o Pa)istanPa)istan

12. Po+ers and nctions o the (ommission1E -he (ommission shall exercise and #erorm sch #o+ers and nctions as are

conerred on it !y or nder this 9rdinance or any other la+.

2E 3ot-ithstandin# anything contained in any other la+, and +ithot #reAdice to the

generality o the oregoing #ro6isions, the :ederal 5o6t. may, !y notifcation in the

o?cial 5aFette, direct that all or any o the #o+ers and nctions conerred on the

:ederal 5o6t. or any o?cer o the :ederal 5o6t. nder any la+ shall, s!Aect to

sch limitations, restrictions or conditions, i any, as it may rom time to time

im#ose, !e exercised or #erormed !y the (ommission.

3E -he (ommission may, !y order in +riting, direct that any #o+er or nction o the

(ommission reerred to in sub2section (1) or sub2section () shall, s!Aect to sch

conditions and limitations, i any, as may !e s#ecifed in the order, !e exercised or

#erormed !y the (hairman o the (ommission or !y sch other mem!er or o?cer

o the (ommission as may !e so s#ecifed.

E -he (ommission, and the mem!er or o?cer reerred in sub2section (%) may, or the

#r#oses o a #roceeding or enBiry, reBire anyone –

aE to #rodce !eore, and to allo+ to !e examined and )e#t !y, an o?cer o the

(ommission s#ecifed in this !ehal, any !oo)s, acconts or other docments in

the cstody or nder the control o the #ersons so reBired, !eing docments

relating to any matter the examination o +hich may !e considered necessary !y

the (ommission or sch mem!er or o?cerG and

!E to rnish to an o?cer o the (ommission s#ecifed in this !ehal sch

inormation and docments in his #ossession relating to any matter as may !e

necessary or the #r#oses o the #roceeding or enBiry.

%E -he #rocedre o the (ommission shall !e sch as may !e #rescri!ed.

*E -he :ederal 5o6t. may a##oint sch o?cers as it thin)s necessary to assist the

(ommission in the #erormance o its dties and nctions nder this 9rdinance

and may ma)e reglations +ith res#ect to their dties.

E /ll o?cers and #ersons em#loyed in the exection o this 9rdinance shall o!ser6e

and allo+ the orders, instrctions and directions o the (ommission.

Note: Sub2Section 3 to are re#ealed !y the

Securities and !"chan#e Commission of &a'istan Act, 199 , +hich is re#rodced as nder$

“aE section 11 and sub2section (%) to () (inclusi+e) of section 1 o the 9rdinance shall stand

re#ealed and exce#t as hereinater #ro6ided, all reerences to the /thority

a##earing in the 9rdinance and any other la+ or the time !eing in orce shall !e

deemed to mean and reer to the (ommissionG"


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Index

Part &Incor#oration o (om#anies and MattersPart &Incor#oration o (om#anies and MattersIncidental -heretoIncidental -hereto

Memorandm o /ssociationMemorandm o /ssociation

1%. Mode o orming a com#any1E /ny 3 or more #ersons associated or any la+l #r#ose may, !y s!scri!ing their

names to a memorandm o association and com#lying +ith the reBirements o

this 9rdinance in res#ect o registration, orm a #!lic com#any and anyone or

more #ersons so associated may, in li)e manner, orm a #ri6ate com#any.

2E a com#any ormed nder sub2section (1) may !e a com#any +ith or +ithot limited

lia!ility, that is to say, &

aE a com#any limited !y sharesG or!E a com#any limited !y garanteeG or

cE an nlimited com#any.

1*. Memorandm o com#any limited !y sharesIn the case o a com#any limited !y shares,&

aE the memorandm shall state

iE the name o the com#any +ith the +ord “limited" as the last +ord o the name in

the case o a #!lic limited com#any, and the #arenthesis and +ords “Pri6ateE

;imited" as the last +ords o the name in the case o a #ri6ate limited com#anyG

iiE the Pro6ince or the #art o Pa)istan not orming #art o a Pro6ince, as the casemay !e, in +hich the registered o?ce o the com#any is to !e sitateG

iiiE the o!Aects o the com#any, and, exce#t in the case o a trading cor#oration, the

territories to +hich they extendGi6E that the lia!ility o the mem!ers is limitedG and

6E the amont o share ca#ital +ith +hich the com#any #ro#oses to !e registered,

and the di6ision thereo into shares o a fxed amontG

!E no s!scri!er o the memorandm shall ta)e less than one shareG and

cE each s!scri!er o the memorandm shall +rite o##osite to his name the nm!ero shares he ta)es.

0


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Index

1. Memorandm o com#any limited !y garanteeIn the case o a com#any limited !y garantee

aE +hether or not the com#any has a share ca#ital, the memorandm shall state$

iE the name o the com#any +ith the #arenthesis and +ords “5aranteeE

;imited" as the last +ords o its nameGiiE the Pro6ince or the #art o Pa)istan not orming #art o a Pro6ince, as the case

may !e, in +hich the registered o?ce o the com#any is to !e sitateGiiiE the o!Aects o the com#any, and, exce#t in the case o a trading

cor#oration, the territories to +hich they extendGi6E that the lia!ility o the mem!ers is limitedG and

6Ethat each mem!er nderta)es to contri!te to the assets o the com#any in

the e6ent o its !eing +ond # +hile he is a mem!er, or +ithin 1 year

ater+ards, or #ayment o the de!ts and lia!ilities o the com#any contracted

!eore he ceases to !e a mem!er, and o the costs, charges and ex#enses o

+inding #, and or adAstment o the rights o the contri!tories amongthemsel6es, sch amont as may !e reBired, not exceeding a s#ecifed

amontG and

!E i the com#any has a share ca#ital,

iE the memorandm shall also state the amont o share ca#ital +ith +hich the

com#any #ro#oses to !e registered and the di6ision thereo into shares o a

fxed amontGiiEno s!scri!er o the memorandm shall ta)e less than one shareG and

iiiE each s!scri!er shall +rite o##osite to his name the nm!er o shareshe ta)es

10. Memorandm o nlimited com#anyIn the case o an nlimited com#any, &

aE +hether or not the com#any has a share ca#ital, the memorandm shall state &

iE the name o the com#anyGiiE the Pro6ince or the #art o Pa)istan not orming #art o a Pro6ince, as the case

may !e, in +hich the registered o?ce o the com#any is to !e sitateG and

iiiE the o!Aects o the com#any, and, exce#t in the case o a trading

cor#oration the territories to +hich they extendG and

!E i the com#any has a share ca#ital, &

iE no s!scri!er o the memorandm shall ta)e less than one shareG and

iiEeach s!scri!er shall +rite o##osite to his name the nm!er o shares he

ta)es.


15/96

Index

1. Printing, signatre, etc. o memorandm$1E -he memorandm shall !e &

aE #rintedG!E di6ided into #aragra#hs nm!ered consecti6elyG

cE signed !y each s!scri!er, +ho shall add his #resent

name in ll,J his occ#ation andL athers name or, in the case o a married +oman or +ido+, her hs!ands or

deceased hs!ands name in ll,N his nationality andO his sal residential address and

sch other #articlars as may !e #rescri!ed,

in the #resence o a +itness +ho shall attest the signatre and shall li)e+ise add

his #articlarsG and

dE dated

2E 3ot-ithstandin# anthin# contained in this Ordinance or in any other la+ or the time

!eing in orce or the memorandm and articles, the memorandm and articles o a

com#any shall !e deemed to inclde, and al+ays to ha6e inclded, the #o+er to

enter into any arrangement or o!taining loans, ad6ances or credit, as defned in

the an'in# Companies Ordinance, 19$, and to isse other secrities not !ased on

interest or raising resorces rom a schedled !an) or a fnancial instittion.

2. estriction on alteration o memorandm$(om#any shall not alter the condition contained in its memorandm exce#t in the cases

and in the mode and to the extent s#ecifed in this 9rdinance.

21. /lteration o memorandm$1E S!Aect to the #ro6isions o this 9rdinance,

a com#any may, !y s#ecial resoltion,

alter the #ro6isions o its memorandm so as to change

the #lace o its registered o?ce rom

one Pro6ince to another, orJ rom one city or to+n in a Pro6ince to another, orL rom a #art o Pa)istan not orming #art o a Pro6ince to a Pro6ince or rom a

Pro6ince

N to a #art o Pa)istan not orming #art o a Pro6ince, or

1


16/96

Index

J +ith res#ect to the o!Aects o the com#any, so ar as may !e reBired to ena!le it &

aE to carry on its !siness more economically or more e?cientlyG or!E to attain its main #r#ose !y ne+ or im#ro6ed meansG orcE to enlarge or change the local area o its o#erationsG ordE to carry on some !siness, not !eing a !siness s#ecifed in its memorandm,

that may con6eniently or ad6antageosly !e com!ined +ith the !siness o the

com#anyeE to restrict or a!andon any o the o!Aects s#ecifed in the memorandmG orE to sell or dis#ose o the +hole or any #art o the nderta)ing o the com#anyG or

gE to amalgamate +ith any other com#any or !ody o #ersons.

2E -he alteration shall not ta)e e4ect ntil and exce#t in so ar as it is confrmed !y the

(ommission on #etitionG

Provided that an alteration so as to change the #lace o registered o?ce o a

com#any rom a #lace in the Pro6ince o the PnAa! to the Islama!ad (a#ital

-erritory or rom the latter to a #lace in the Pro6ince o the PnAa!, or rom one

city in a Pro6ince to another, shall not reBire confrmation !y the (ommission.

3E @eore confrming the alteration, the (ommission mst !e satisfed&

aE that s?cient notice has !een gi6en toe6ery holder o de!entres o the com#any, andto any #erson or class o #ersons

+hose interest +ill, in the o#inion o the (ommission, !e a4ected !y the alterationG

and

!E that, +ith res#ect to e6ery creditor +ho in the o#inion o the (ommission is

entitled to o!Aect,and +ho signifes his o!Aection in manner directed !y the (ommission,either his consent to the alteration has !een o!tained orhis de!t or claim has !een discharged or determined,

or has !een secred to the satisaction o the (ommissionG

Provided that the (ommission may, in the case o any #erson or class o #ersons, or

s#ecial reasons, dis#ense +ith the notice reBired !y clause (a).

22. Po+er o (ommission +hen confrming alteration-he (ommission may ma)e an order confrming the alteration either +holly or in #art,

and on sch terms and conditions as it thin)s ft, and may ma)e sch order as to

costs as it thin)s #ro#er.

23. 'xercise o discretion !y (ommission

-he (ommission shall in exercising its discretion nder sections 1 and ha6e regard to

the rights and interest o the mem!ers o the com#any or any class o them, as

+ell as to the right and interests o the creditors, and may, i it thin)s ft, adAorn

the #roceedings in order that an arrangement may !e made to the satisaction o

the (ommission or the #rchase o the interests o dissident mem!ersG and may

gi6e sch directions and ma)e sch orders as it may thin) ex#edient or acilitating

or carrying into e4ect any sch arrangement$

11


17/96

Index

Provided that no #art o the ca#ital o the com#any may !e ex#ended in any sch

#rchase.

12


18/96

Index

2. Procedre on confrmation o the alteration1E / certifed co#y o order confrming the alteration,

together +ith a #rinted co#y o the memorandm as altered,shall, +ithin days rom the date o the order, fled !y the com#any +ith the

registrar,and he shall register the same, and shall certiy the registration nder his hand,

and the certifcate shall !e conclsi6e e6idence that all the reBirements o this9rdinance +ith res#ect to the alteration and the confrmation thereo ha6e !een

com#lied +ith,

and thenceorth memorandm so altered shall !e the memorandm o the

com#any.

2E 7here the alteration in6ol6es a transer o the registered o?ce rom one

Pro6ince to another, or rom the Islama!ad (a#ital -erritory to a Pro6ince or rom a

Pro6ince to Islama!ad (a#ital -erritory, a certifed co#y o the order confrming

sch alteration shall !e fled !y the com#any +ith the registrar in each o sch#ro6inces or the Islama!ad (a#ital -erritory, as the case may !e, and each sch

registrar shall register the same, and shall certiy nder his hand the registration

thereo, and the registrar or the Pro6ince or the -erritory rom +hich sch o?ce is

transerred shall send to the registrar or the other Pro6ince or -erritory all

docments relating to the com#any registered or fled in his o?ce.

3E -he (ommission may !y order at any time extend the time or the fling o

docments +ith the registrar nder this section or sch #eriod as it thin)s #ro#er.

2%. '4ect o ailre to register +ithin days8o sch alteration shall ha6e any o#eration ntil registration thereo has !een dly

e4ected in accordance +ith the #ro6isions of section 4, and i sch registration is

not e4ected +ithin days next ater the date o the order o the (ommission

confrming the alteration, or +ithin sch rther time, as may !e allo+ed !y the

(ommission, in accordance +ith the #ro6isions of section 4, sch alteration and

order, i any, and all #roceedings connected there+ith shall, at the ex#iration o

sch #eriod o days or sch rther time, as the case may !e, !ecome nll and

6oid

Provided that the (ommission may, on s?cient case sho+n, re6i6e the order or

alteration, as the case may !e, on a##lication made +ithin a rther #eriod o

days.

13


19/96

Index

/rticles o /ssociation/rticles o /ssociation

2*. egistration o articles1E -here may,

in the case o a com#any limited !y shares,

and there shall, in the case o a com#any limited !y garantee or

an nlimited com#any,

!e registered +ith the memorandm, articles o association

signed !y the s!scri!ers to the memorandm and

setting ot reglations or the com#any.

2E /rticles o association may ado#t all or any o the reglations contained in

Table A in the First Schedule.

3E In the case o an nlimited com#any or a com#any limited !y garantee,

the articles, i the com#any has a share ca#ital,

shall state the amont o share ca#ital +ith +hich the com#any #ro#oses to !e

registered.

E In the case o an nlimited com#any or a com#any limited !y garantee,

i the com#any has not a share ca#ital,

the articles shall state the nm!er o mem!ers +ith +hich the com#any #ro#oses

to !e registered.

%E In the case o a com#any limited !y shares and registered ater thecommencement o this 9rdinance, i articles are not registered, or, i articles are

registered, in so ar as the articles do not exclde or modiy the reglations in

Table A in the First Schedule,

those reglations shall, so ar as a##lica!le, !e the reglations o the com#any in

the same manner and to the same extent as i they +ere contained in dly

registered articles.

*E -he articles o e6ery com#any shall !e

ex#licit and +ithot am!igity and, +ithot #reAdice to the generality o theoregoing,

shall list and enmerate the 6oting and other rights attached to the di4erent

classes o shares and other secrities, i any, issed or to !e issed !y it.

1


20/96

Index

5eneral Pro6isions 7ith es#ect -o egistration o 5eneral Pro6isions 7ith es#ect -o egistration o Memorandm and /rticlesMemorandm and /rticles

3. egistration o memorandm and articles, etc1E -he memorandm and the articles, i any, shall !e fled +ith the registrar in

the Pro6ince or the #art o Pa)istan not orming #art o a Pro6ince, as the case may

!e, in +hich the registered o?ce o the com#any is stated !y the memorandm to

!e sitate.

2E / declaration !y sch #erson as may !e #rescri!ed in this !ehal, or !y a

#erson named in the articles as a director, or other o?ce o the com#any, o

com#liance +ith all or any o the reBirements o this 9rdinance and the rles

made there nder shall !e fled +ith the registrarG and the registrar may acce#t

sch a declaration as s?cient e6idence o sch com#liance.

3E I the registrar is satisfed that the com#any is !eing ormed or la+l

#r#oses, that none o its o!Aects stated in the memorandm is ina##ro#riate ordece#ti6e or ins?ciently ex#ressi6e and that all the reBirements o this

9rdinance and the rles made there nder ha6e !een com#lied +ith in res#ect o

registration and matters #recedent and incidental thereto, he shall retain and

register the memorandm and articles, i any.

E I registration o the memorandm is resed, the s!scri!ers o the

memorandm or any one o them athorised !y them in +riting may either s##ly

the defciency and remo6e the deect #ointed ot, or +ithin 3 days o the order o

resal #reer an a##eal &aE +here the order o resal has !een #assed !y an additional registrar, a Aoint

registrar, a de#ty registrar or an assistant registrar, to the registrarG and

!E +here the order o resal has !een #assed, or #&held in a##eal, !y the

registrar, to the (ommission.

%E /n order o the (ommission nder sub2section (4) shall !e fnal and shall not !e

called in Bestion !eore any (ort or other athority.

31. '4ect o memorandm and articles1E -he memorandm and articles shall, +hen registered, !ind the com#any and

the mem!ers thereo to the same extent as i they res#ecti6ely had !een signed !y

each mem!er and contained a co6enant on the #art o each mem!er, his heirs, and

legal re#resentati6es, to o!ser6e and !e !ond !y all the #ro6isions o the

memorandm and o the articles, s!Aect to the #ro6isions o this 9rdinance.

2E /ll money #aya!le !y any mem!er to the com#any nder the memorandm

or articles shall !e a de!t de rom him to the com#any.

1%


21/96

Index

32. '4ect o registration$1E 9n the registration o the memorandm o a com#any, the registrar shall<

certiy nder his hand that the com#any is incor#orated and, in the case o a

limited com#any, that the com#any is limited !y shares or garantee, as the case

may !e.

2E :rom the date o incor#oration mentioned in the certifcate o incor#oration,

the s!scri!ers o the memorandm, together +ith sch other #ersons as may

rom time to time !ecome mem!ers o the com#any, shall !e a !ody cor#orate !y

the name contained in the memorandm, ca#a!le orth+ith o exercising all the

nctions o an incor#orated com#any, and ha6ing #er#etal sccession and a

common seal, !t +ith sch lia!ility on the #art o the mem!ers to contri!te to

the assets o the com#any in the e6ent o its !eing +ond # as is mentioned in

this 9rdinance.

33. (onclsi6eness o certifcate o incor#oration

/ certifcate o incor#oration gi6en !y the registrar in res#ect o any association shall

!e conclsi6e e6idence that all the reBirements o this 9rdinance in res#ect o

registration and o matters #recedent and incidental thereto ha6e !een com#lied

+ith, and that the association is a com#any athorised to !e registered and dly

registered nder this 9rdinance.

3. '4ect o alteration in memorandm or articles 3ot-ithstandin# anything contained in the memorandm or articles o a com#any, no

mem!er o the com#any shall !e !ond !y an alteration made in the memorandm

or articles ater the date on +hich he !ecame a mem!er i and so ar as the

alteration reBires him to ta)e or s!scri!e or more shares than the nm!er held

!y him at the date on +hich the alteration is made, or in any +ay increases his

lia!ility as at that date to contri!te to the share ca#ital o, or other+ise to #ay

money to, the com#any$

Provided that this section shall not a##ly in any case +here the mem!er agrees in

+riting either !eore or ater the alteration is made to !e !ond there!y.

3%. (o#ies o memorandm and articles to !e gi6en tomem!ers.

1E '6ery com#any shall send to e6ery mem!er, at his reBest and +ithin 1 days

thereo, on #ayment o sch sm, not exceeding the #rescri!ed amont, as the

com#any may fx, a co#y o the memorandm and the articles, i any.

2E I a com#any ma)es dealt in com#lying +ith the reBirements o sub2

section (1), it shall !e lia!le or each o4ence to a fne not exceeding 1 r#ees.

3*. /lterations o memorandm or articles to !e noted in e6ery

co#y1E 7here an alteration is made in the memorandm or articles o a com#any,

e6ery co#y o the memorandm or articles issed ater the date o the alteration

shall conorm to the memorandm or articles as so altered.

1*


22/96

Index

2E I, +here any sch alteration has !een made, the com#any at any time ater

the date o the alteration isses any co#ies o the memorandm or articles +hich

do not conorm to the memorandm or articles as so altered, it shall !e lia!le to a

fne +hich may extend to 1, r#ees or each co#y so issed and e6ery o?cer o

the com#any +ho is )no+ingly and +illly in dealt shall !e lia!le to the li)e

#enalty.

Pro6isions 7ith es#ect -o 8ames o (om#aniesPro6isions 7ith es#ect -o 8ames o (om#anies3. Prohi!ition o certain names1E 8o com#any shall !e registered !y a name +hich in the o#inion o the

(ommission is ina##ro#riate or dece#ti6e or is designed to ex#loit or o4end the

religios ssce#ti!ilities o the #eo#le.

2E / com#any shall not !e registered !y a name identical +ith that !y +hich a

com#any in existence is already registered, or so nearly resem!ling that name as

to !e calclated to decei6e, exce#t +here the com#any in existence is in thecorse o !eing dissol6ed and signifes its consent in sch manner as the registrar

reBires.

3E 'xce#t +ith the #rior a##ro6al in +riting o the (ommission, no com#any shall

!e registered !y a name +hich contains any +ords sggesting or calclated to

sggest &

E the #atronage o any, #ast or #resent, Pa)istani or oreign, Kead o StateG

aE any connection +ith the :ederal 5o6t. or a Pro6incial 5o6t. or any de#artment

or athority o any sch 5o6t.$!E any connection +ith any cor#oration set # !y or nder any :ederal or

Pro6incial la+G or

cE the #atronage o , or any connection +ith, any oreign 5o6t. or any

international organiFation.

%E 7hene6er a Bestion arises as to +hether or not the name o a com#any is in

6iolation o the oregoing #ro6isions o this section, the decision o the (ommission

shall !e fnal.

30. ectifcation o name o a com#any/ com#any +hich, throgh inad6ertence or other+ise, is registered !y a name in

contra6ention o the #ro6isions of section %

aE may, +ith the a##ro6al o the registrar, change its nameG and

!E shall, i the registrar so directs, +ithin 3 days o the recei#t o sch direction,

change its name +ith the a##ro6al o the registrar$

Provided that the registrar shall, !eore issing a direction or the change o name,

a4ord the com#any an o##ortnity to ma)e re#resentation against the #ro#oseddirection$

1


23/96

Index

Provided further that no direction nder clause (b) shall !e issed ater the ex#iration

o 3 years rom the date o registration o the com#any or registration !y its ne+

name, as the case may !e.

3. (hange o name !y a com#any$/ com#any may, !y s#ecial resoltion and +ith the a##ro6al o the registrar signifed

in +riting, change its name$

Provided that no sch a##ro6al shall !e reBired +here the only change in the name

o a com#any is the addition thereto or, as the case may !e, the deletion

thererom, o the #arenthesis and +ord “Pri6ateE" conseBent on the con6ersion in

accordance +ith the #ro6isions o this 9rdinance o a #!lic com#any into a #ri6ate

com#any or o a #ri6ate com#any into a #!lic com#any.

. egistration o change o name and e4ect thereo$1E 7here a com#any changes its name, the registrar shall enter the ne+ name on

the register in #lace o the ormer name, and shall isse a certifcate oincor#oration altered to meet the circmstances o the caseG and, on the isse o

sch a certifcate, the change o name shall !e com#lete.

2E 7here a com#any changes its name it shall, or a #eriod o 1 year rom the date o

isse o a certifcate !y the registrar nder sub2section (1), contine to mention its

ormer name along +ith its ne+ name on the otside o e6ery o?ce or #lace in

+hich its !siness is carried on and in e6ery docment or notice reerred to in

clauses (a) and (c) of section 14%$

Provided that the addition or deletion as the case may !e, o the #arenthesis and

+ord “Pri6ateE" rom the name o a com#any conseBent on the con6ersion in

accordance +ith the #ro6isions o this 9rdinance o a #!lic com#any into a

#ri6ate com#any or o a #ri6ate com#any into a #!lic com#any shall not !e

deemed to !e a change o name or the #r#ose o this sub2section.

3E -he change o name shall not a4ect any rights or o!ligations o the com#any, or

render deecti6e Qany legal #roceedings !y or against the com#anyG and any legal

#roceedings !y or against the com#anyG and any legal #roceedings that might ha6e

!een contined or commenced against the com#any !y its ormer name may !e

contined !y or commenced against the com#any !y its ne+ name.

1. /lteration o names on commencement o 9rdinance andchange o stats o com#any

1E /s rom the date o commencement o this 9rdinance, the name o e6ery existing

com#any shall !e deemed to inclde, !eore the last +ord “;imited$, the

#arenthesis and +ord “Pri6ateE" in the case o a #ri6ateG com#any and the

#arenthesis and +ord “5aranteeE" in the case o a com#any limited !y

garantee, and the memorandm o association, the certifcate o incor#oration

and other !oo)s and #a#ers shall !e deemed to !e altered accordingly rom that

date.

10


24/96

Index

2E 9n con6ersion o a #!lic com#any into a #ri6ate com#any in accordance +ith the

#ro6ision o this 9rdinance, the registrar shall add the #arenthesis and +ord

“Pri6ateE" !eore the +ord “;imited" in the name o the com#any in the register

and shall also isse a certifcate to meet the circmstances o the case.

3E 9n con6ersion o a #ri6ate com#any into a #!lic com#any in accordance +ith the

#ro6isions o this 9rdinance, the registrar shall omit the #arenthesis and +ord

“Pri6ateE" in the name o the com#any in the register and shall also isse acertifcate to meet the circmstances o the case.

E I dealt is made in com#lying +ith a direction issed !y the registrar nder

section %8, or +ith the reBirements o sub2section () of section 4/, or in gi6ing e4ect to

the #ro6isions o sub2section (1) o this section, the com#any, and e6ery director or

o?cer o the com#any +ho is )no+ingly and +illly in dealt, shall !e lia!le to a

fne not exceeding 1, r#ees and to a rther fne not exceeding 2 r#ees or

e6ery day ater the frst dring +hich the dealt contines.

/ssociations 8ot :or Proft/ssociations 8ot :or Proft2. Po+er to dis#ense +ith “;imited" in the name o charitable and

other com#anies1E 7here it is #ro6ed to the satisaction o the (ommission that an association

ca#a!le o !eing ormed as a limited com#any has !een or is a!ot to !e ormed

or #romoting commerce, art, science, religion, s#orts, social ser6ices, charity or

any other sel o!Aect, and a##lies or intends to a##ly its #rofts, i any, or other

income in #romoting its o!Aects, and to #rohi!it the #ayment o any di6idend to its

mem!ers, the (ommission may grant a license and direct that the association !e

registered as a com#any +ith limited lia!ility, +ithot the addition o the +ords

“;imited", “Pri6ateE ;imited" or “5aranteeE ;imited" as the case may !e, to its

name, and the association may !e registered accordingly.

2E a licence nder sub2section (1) may !e granted on sch conditions and s!Aect to

sch reglations as the (ommission thin)s ft and those conditions and reglations

shall !e !inding on the association and shall, i the (ommission so directs, !e

inserted in the memorandm and articles, or in one o those docments.

3E -he association shall on registration enAoy all the #ri6ileges o a limited com#any

and !e s!Aect to all its o!ligations, exce#t those o sing the +ord or +ords

“;imited", “Pri6ateE ;imited" or “5aranteeE ;imited", as the case may !e, as #art

o its name.

E a licence nder this section may at any time !e re6o)ed !y the (ommission, and

#on its re6ocation the registrar shall enter the +ord or +ords “;imited", “Pri6ateE

;imited" or “5aranteeE ;imited", as the case may !e, at the end o the name o

the association #on the register, and the association shall cease to enAoy the

exem#tions and #ri6ileges granted !y the #receding sub2sections$

Provided that , !eore a license is so re6o)ed, the (ommission shall gi6e to the

association notice in +riting o its intention, and shall a4ord the association an

o##ortnity o s!mitting a re#resentation in o##osition to the re6ocation.

1


25/96

Index

(om#anies ;imited !y 5arantee(om#anies ;imited !y 5arantee

3. Pro6ision as to com#anies limited !y garantee1E In the case o a com#any limited !y garantee and not ha6ing a share ca#ital,

e6ery #ro6ision in the memorandm or articles or in any resoltion o the com#any

#r#orting to gi6e any #erson a right to #artici#ate in the di6isi!le #rofts o the

com#any other+ise than as a mem!er shall !e 6oid.2E :or the #r#ose o the #ro6isions o this 9rdinance relating to the memorandm o

a com#any limited !y garantee and o sub2section (1), e6ery #ro6ision in the

memorandm or articles, or in any resoltion, o a com#any limited !y garantee

#r#orting to di6ide the nderta)ing o the com#any into shares or interests shall

!e treated as a #ro6ision or a share ca#ital, 3ot-ithstandin# that the nominal amont

or nm!er o the shares or interests is not s#ecifed there!y.

2


26/96

Index

Part %& Pros#ects, /llotment, Isse and -ranserPart %& Pros#ects, /llotment, Isse and -ransero Shares and De!entres, De#osits, 'tc.o Shares and De!entres, De#osits, 'tc.

Pros#ectsPros#ects

%2. Pros#ects to !e dated/ #ros#ects issed !y or on !ehal o a com#any shall !e dated, and that date shall,

nless the contrary is #ro6ed, !e ta)en as the date o #!lication o the #ros#ects.

%3. Matters to !e stated and re#orts to !e set ot in #ros#ects.1E '6ery #ros#ects issed &

aE !y or on !ehal o a com#any, or

!E !y or on !ehal o any #erson +ho has !een engaged or interested in the

ormation o a com#any,

shall state the matters s#ecifed in section 1 of &art of the Second Schedule andset ot the re#orts s#ecifed in section of that &art and

the said sections 1 and shall ha6e e4ect s!Aect to the #ro6isions contained in

section % of that &art .

1/E a s?cient nm!er o co#ies o the #ros#ects issed nder sub2section (1) shall !e

made a6aila!le at

the registered o?ce o the com#any,J +ith the stoc) exchange at +hich the com#any is listed or is #ro#osed to !e listed

andL +ith the !an)ers to the isse,

N and the #ros#ects in its ll text or in sch a!ridged orm as may !e #rescri!ed,

shall !e #!lished at least in one Rrd and one 'nglish daily ne+s#a#er.

2E 8o #ros#ects shall !e issed or an ad6ertisement o a #ros#ects #!lished in a

ne+s#a#er less than days or more than 3 days !eore the s!scri#tion list, as

s#ecifed in the #ros#ects, is de to o#en$

Provided that the (ommission may or s#ecial reasons allo+ #ros#ects to !e

issed or an ad6ertisement o a #ros#ects to !e #!lished more than 3 days !eore the s!scri#tion list is de to o#en.

3E I a #ros#ects is issed +hich does not com#ly +ith the #ro6isions o sub2section (1)

or sub2section (), e6ery #erson +ho is )no+ingly res#onsi!le or the isse o sch

#ros#ects shall !e lia!le to a fne not exceeding 1, r#ees and in the case o a

contining dealt to a rther fne not exceeding 2 r#ees or e6ery day rom the

day o the isse o the #ros#ects ntil a #ros#ects com#lying +ith the

reBirements aoresaid is issed and a co#y thereo is fled +ith the registrar.

E a condition reBiring or !inding an a##licant or shares in or de!entres o acom#any to +ai6e com#liance +ith any o the reBirements o this section or

#r#orting to a4ect him +ith notice o any contract, docment or matter not

s#ecifcally reerred to in the #ros#ects, shall !e 6oid.

21


27/96

Index

%E 8o one shall isse any orm o a##lication or shares in or de!entres o a

com#any, nless the orm is accom#anied !y a #ros#ects +hich com#lies +ith the

reBirements o this section$

Provided that this sub2section shall not a##ly i it is sho+n that the orm o a##lication

+as issed either &

iE in connection +ith a !ona fde in6itation to a #erson to enter into an

nder+riting agreement +ith res#ect to the shares or de!entresG or

iiE in relation to shares or de!entres +hich +ere not o4ered to the #!lic.

*E I any #erson acts in contra6ention o the #ro6isions o sub2section (0) he shall !e

lia!le to a fne not exceeding 2, r#ees.

E a director or other #erson res#onsi!le or the #ros#ects shall not incr any

lia!ility !y reason o any non&com#liance +ith, or contra6ention o, any o the

reBirements o the section, i &

aE as regards any matter not disclosed, he #ro6es that he had no )no+ledgethereoG or

!E he #ro6es that the non&com#liance or contra6ention arose rom an honest

mista)e o act on his #artG or

cE that non&com#liance or contra6ention +as in res#ect o matters +hich, in the

o#inion o the registrar or o?cer dealing +ith the case, +ere immaterial, or +as

other+ise sch as oght, in the o#inion o that registrar or o?cer, as the case

may !e, ha6ing regard to all the circmstances o the case, reasona!ly to !e

excsed$

Provided that no director o other #erson shall incr any lia!ility in res#ect o the

ailre to inclde in a #ros#ects a statement +ith res#ect to the matters

s#ecifed in clause 18 of &art of the Second Schedule, nless it is #ro6ed that he had

)no+ledge o the matters not disclosed

0E This section shall not a##ly &

aE to the isse to existing mem!ers or de!entre&holders o a com#any o a

#ros#ects or orm o a##lication relating to shares in or de!entres o the

com#any, +hether an a##licant or shares or de!entres +ill or +ill not ha6e theright to renonce in a6or o other #ersonsG or

!E to the isse o a #ros#ects or orm o a##lication relating to shares or

de!entres +hich are, or are to !e, in all res#ects niorm +ith shares or

de!entres #re6iosly issed and or the time !eing dealt in or Boted on a

stoc) exchangeG

!t, s!Aect as aoresaid, this section shall a##ly to a #ros#ects or a orm o

a##lication, +hether issed on or +ith reerence to the ormation o a com#any

or s!seBently

E 8othing in this section shall limit or diminish any lia!ility +hich any #erson may

incr nder the general la+ or nder any other #ro6ision o this 9rdinance.

22


28/96

Index

%. 'x#ert to !e nconnected +ith ormation or management ocom#any

/ #ros#ects in6iting #ersons to s!scri!e or shares in or de!entres o a com#any

shall not inclde a statement #r#orting to !e made !y an ex#ert, nless the

ex#ert is a #erson +ho is not, and has not !een, engaged or interested in the

ormation or #romotion, or in the management, o the com#any.

%%. 'x#ert


29/96

Index

%. /##ro6al, isse and registration o #ros#ects1E 8o listed com#any, and no com#any +hich #ro#oses to ma)e an a##lication to a

stoc) exchange or listing o its secrities and no other #ersons, shall isse,

circlate or #!lish any #ros#ects or other docment o4ering or s!scri#tion or

#!licly o4ering or sale any secrity nless a##ro6al o the (ommission to its

isse, circlation or #!lication has !een o!tained +ithin the #eriod o * days

#receding the date o its isse.

2E -he (ommission may, +hile according a##ro6al nder sub2section (1), im#ose sch

conditions as it may deem necessary.

3E 8o #ros#ects shall !e issed !y or on !ehal o a com#any nless, on or, !eore

the date o its #!lication, there has !een deli6ered to the registrar a co#y, thereo,

signed !y e6ery #erson +ho is named therein as a director or #ro#osed director o

the com#any or !y his agent athorised in +riting, and ha6ing endorsed thereon or,

attached thereto

aE any consent to the isse o the #ros#ects reBired !y section 00 rom any

#erson as an ex#ertG and

!E in the case o a #ros#ects issed generally, also

iE a co#y o e6ery contract reBired !y clause 1$ of &art of the Second Schedule to !e

s#ecifed in the #ros#ects, or, in the case o a contract not redced into

+riting, a memorandm gi6ing ll #articlars thereoG and

iiE +here the #ersons ma)ing any re#ort reBired !y &art of that Schedule ha6e

made therein, or ha6e +ithot gi6ing the reasons, indicated therein, any sch

adAstments as are mentioned in clause %$ of &art of that Schedule, a +ritten

statement signed !y those #erson setting ot the adAstments and gi6ing the

reason thereore.

E '6ery #ros#ects to +hich this section a##lies shall, on the ace o it

aE state that a co#y has !een deli6ered to the registrar as reBired !y sub2

section (%)G

!E s#eciy any docments reBired !y this section to !e endorsed on or attached to

the co#y so deli6ered, or reer to statements inclded in the #ros#ects +hich

s#eciy those docmentsG and

cE +here a##lication has !een made, or is #ro#osed to !e made, to a stoc)

exchange or the listing o the secrity, state that sch an a##lication has !een

made or is #ro#osed to !e made.

%E -he registrar shall not register a #ros#ects nless the reBirements o sections %2,

%3, % and %% and this section ha6e !een com#lied +ith and the #ros#ects is

accom#anied !y the consent in +riting o the #erson, i any, named therein as the

aditor, legal ad6iser, attorney, solicitor, !an)er or !ro)er, !eing a mem!er o a

stoc) exchange, o the com#any, to act in that ca#acity.

2


30/96

Index

*E I a #ros#ects is issed, #!lished or circlated +ithot com#lying +ith, or in

contra6ention o any #ro6ision o this section, the com#any, and e6ery #erson +ho is

)no+ingly a #arty to the isse, #!lication or circlation o the #ros#ects, shall !e

lia!le to a fne not exceeding 1, r#ees and in the case o a contining dealt

to a rther fne not exceeding 2 r#ees or e6ery day rom the date o isse,

#!lication or circlation, as the case may !e, o the #ros#ects, ntil a co#y

thereo com#lying +ith all the reBirements o this section has !een deli6ered to theregistrar.

2%


31/96

Index

Part * & Share (a#ital and De!entresPart * & Share (a#ital and De!entres

8atre, 8m!ering and (ertifcate o Shares8atre, 8m!ering and (ertifcate o Shares

0. 8atre o shares and certifcate o shares1E -he shares or other interest o any mem!er in a com#any shall !e mo6a!le

#ro#erty, transera!le in the manner #ro6ided !y the articles o the com#any.

2E 'ach share in a com#any shall ha6e a distincti6e nm!er.

3E a certifcate nder the common seal o the com#any s#eciying any shares held !y

any mem!er shall !e #rima acia e6idence o the title o the mem!er to the shares

therein s#ecifed.

(lasses and =inds o Shares(lasses and =inds o Shares

. (lasses and )inds o share ca#ital.

1E a com#any limited !y share may ha6e di4erent )inds o share ca#ital and classes

therein as #ro6ided !y its memorandm and articles$

Provided that di4erent rights and #ri6ileges in relation to the di4erent classes o

shares may only !e conerred in sch manner as may !e #rescri!ed.

5eneral Pro6isions /s -o Share (a#ital5eneral Pro6isions /s -o Share (a#ital

1. 9nly lly #aid shares to !e issed8o com#any shall isse #artly #aid shares$

Provided that +here a com#any has #artly #aid shares on the commencement o this

9rdinance, it &

iE shall not isse any rther share ca#ital ntil all the shares #re6iosly issed ha6e

!ecome lly #aid #G and

iiE shall #ay di6idend only in #ro#ortion to the amont #aid # on each share.

2*


32/96

Index

2. Po+er o com#any limited !y shares to alter its share ca#ital1E a com#any limited !y shares, i so athorised !y its articles, may alter the conditions

o its memorandm so as to &

aE increase its share ca#ital !y sch amont as it thin)s ex#edientG

!E consolidate and di6ide the +hole or any #art o its share ca#ital into shares o

larger amont than its existing sharesG

cE s!&di6ide its shares, or any o them, into shares o smaller amont than is fxed

!y the memorandmG or

dE cancel shares +hich, at the date o the #assing o the resoltion in that !ehal,

ha6e not !een ta)en or agreed to !e ta)en !y any #erson, and diminish the

amont o its share ca#ital !y the amont o the shares so cancelled$

Provided that, in the e6ent o consolidation or s!&di6ision o shares, the rights

attaching to the ne+ shares shall !e strictly #ro#ortional to the rights attaching

to the #re6ios shares to consolidated or s!&di6ided$Provided further that , +here any shares issed are o a class +hich is the same as

that o shares #re6iosly issed, the rights attaching to the ne+ shares shall !e

the same as those attaching to the shares #re6iosly held.

2E -he ne+ shares issed !y a com#any shall ran) pari passu +ith the existing shares

o the class to +hich the ne+ shares !elong in all matters, inclding the right to

sch !ons or right isse and di6idend as may !e declared !y the com#any

s!seBent to the date o isse o sch ne+ shares.

3E -he #o+ers conerred !y sub2section (1) shall !e exercisa!le !y the com#any only ina general meeting.

3/E 3ot-ithstandin# anthin# contained in this Ordinance or any other la+ or the time !eing in

orce or the memorandm and articles, +here the athorised ca#ital o a com#any

is lly s!scri!ed, or the ns!scri!ed ca#ital is ins?cient, the same shall !e

deemed to ha6e !een increased to the extent necessary or isse o shares to a

schedled !an) or fnancial instittion in #rsance o any o!ligation o the

com#any to isse shares to sch schedled !an) or fnancial instittion in

#rsance o any o!ligation o the com#any to isse shares to sch schedle !an)

or fnancial instittion.

E a cancellation o shares in #rsance o sub2section (1) shall not !e deemed to !e a

redction o share ca#ital +ithin the meaning o this 9rdinance.

%E -he com#any shall fle +ith the registrar notice o the exercise o any #o+er

conerred to in sub2section (1) +ithin 1% days rom the exercise thereo.

3. 8otice to registrar o consolidation o share ca#ital, etc1E 7here a com#any ha6ing a share ca#ital has consolidated and di6ided its share

ca#ital into shares o larger amontG than its existing shares, it shall, +ithin 1% dayso the consolidation and di6ision, fle notice +ith the registrar o the same,

s#eciying the shares consolidated and di6ided.

2


33/96

Index

2E I a com#any ma)es dealt in com#lying +ith the reBirements o sub2

section (0) of section 9 or sub2section (1) of this section, it shall !e lia!le to a fne +hich

may extent to 1 r#ees or e6ery day dring +hich the dealt contines, and

e6ery o?cer o the com#any +ho )no+ingly, and +illly athorises or #ermits the

dealt shall !e lia!le to the li)e #enalty.

. 8otice o increases o share ca#ital or o mem!ers1E 7here a com#any ha6ing a share ca#ital has resol6ed to increase its shares

ca#ital !eyond the athorised ca#ital, or sch ca#ital is increased nder sub2

section (%2A) of section 9 and +here a com#any not ha6ing a share ca#ital has

resol6ed to increase the nm!er o its mem!ers !eyond the nm!er #re6iosly

registered, it shall fle +ith the registrar, +ithin 1% days ater the #assing o the

resoltion, a notice o the increase o ca#ital or mem!ers, as the case may !e, and

the registrar shall record the increase$

Provided that +here dealt is made !y a com#any in fling a notice o increase in the

athorised ca#ital nder sub2section (%2A) of section 9, the schedled !an) or thefnancial instittion to +hom shares ha6e !een issed may fle notice o sch

increase +ith the registrar and sch notice shall !e deemed to ha6e !een fled !y

the com#any itsel and the schedled !an) or fnancial instittion shall !e entitled

to reco6er rom the com#any the amont o any ee #ro#erly #aid !y it to the

registrar in res#ect o sch increase.

2E -he notice to !e gi6en nder sub2section (1) shall inclde #articlars o the shares to

!e a4ected and the conditions, i any, s!Aect to +hich the ne+ shares are to !e

issed.3E I a com#any ma)es dealt in com#lying the reBirements o sub2section (1), it shall

!e lia!le to a fne +hich may extend to 1 r#ees or e6ery day dring +hich the

dealt contines, and e6ery o?cer o the com#any +ho )no+ingly and +illly

athorises or #ermits the dealt shall !e lia!le to the li)e #enalty.

E 8o resoltion reerred in sub2section (1) shall ta)e e4ect nless the notice reBired

!y that sub2section to !e fled +ith the registrar is dly sent to him.

20


34/96

Index

%. Prohi!ition o #rchase or grant o fnancial assistance !y acom#any or #rchase o its o+n or its holding com#any


35/96

Index

E -he #rchase shall al+ays !e in cash and shall !e ot o the distri!ta!le #rofts.

%E 7here shares are #rchased !y a com#any on #remim, the accont o #remim

shall he charged to Share Premim /ccont o the com#any or in the a!sence o

any !alance therein, to the distri!ta!le #rofts o the com#any.

*E 7here #rchase is made at a #rice lo+er than the nominal 6ale o shares, the

di4erence shall !e credited to the reser6e created nder sub2section (1/).

E -he com#any shall ha6e sch de!t eBity and crrent ratios as may !e #rescri!ed.

0E -he maAority o the directors inclding the chie execti6e, shall at a meeting

ma)e a declaration o sol6ency 6erifed !y an a?da6it to the e4ect that they ha6e

made a ll inBiry into the a4airs o the com#any, and that ater ha6ing done so,

they ha6e ormed the o#inion that the com#any shall contine to o#erate as a

going concern and that it is ca#a!le o meeting its lia!ilities on time dring the

#eriod # to the end o the immediately scceeding fnancial year.

E -he #rchase shall !e made throgh a tender system and the mode o tender

shall !e decided !y the com#any in general meeting throgh a s#ecial resoltion.

1E -he shares #rchased nder this section shall not !e resold and shall !e cancelled

orth+ith. -he amont o the com#any


36/96

Index

13E I a com#any ma)es dealt in com#liance +ith the #ro6isions o this section, the

com#any shall !e lia!le to a fne +hich may extend to 1 million r#ees and any

o?cer o the com#any +ho is )no+ingly and +illly in dealt shall also !e

#nisha!le +ith im#risonment or a term +hich may extend to * months, or +ith fne

+hich may extend to 1 million r#ees, or +ith !oth.

31


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Index

>ariation o Shareholderariation o Shareholderariation o shareholders< rights1E -he 6ariation o the rights o shareholders o any class shall !e e4ected only in the

manner laid do+n in section 8.

2E 8ot less than 1H o the class o shareholders +ho are aggrie6ed !y the 6ariation

o their rights nder sub2section (1) may, +ithin 3 days o the date o the resoltion

6arying their rights, a##ly to the (ort or an order cancelling the resoltion$

Provided that the (ort shall not #ass sch an order nless it is sho+n to its

satisaction that some acts +hich +old ha6e had a !earing on the decision o

the shareholders +ere +ithheld !y the com#any in getting the aoresaid

resoltion #assed or, ha6ing regard to all the circmstances o the case, that the

6ariation +old nairly #reAdice the shareholders o the class re#resented !y

the a##licant.

3E /n a##lication nder sub2section () may !e made on !ehal o the shareholdersentitled to ma)e it !y sch one or more or their nm!er as they may athorise in

+riting in this !ehal.

E -he decision o the (ort on any sch a##lication shall !e fnal.

%E -he com#any shall, +ithin 1% days ater the ser6ice on the com#any o any order

made on any sch a##lication, or+ard a co#y o the order to the registrar and, i

dealt is made in com#lying +ith this #ro6ision, the com#any and e6ery o?cer o

the com#any +ho is )no+ingly and +illly in dealt shall !e lia!le to a fne +hich

may extend to 2 r#ees or each day dring +hich the dealt contines.*E -he ex#ression “6ariation" incldes a!rogation, re6ocation or enhancement.

E Section 0 o the imitation Act, 19/8, shall a##ly to an a##lication made nder sub2

section ().

32


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Index

Part & egistration o Mortgages, (harges, 'tc.Part & egistration o Mortgages, (harges, 'tc.

121. (ertain mortgages and charges to !e 6oid i not registered1E '6ery mortgage, charge or other interest created ater the commencement o this

9rdinance !y a com#any and !eing either &

aE a mortgage or charge or the #r#ose o secring any isse o de!entresG or

!E a mortgage or charge on ncalled share ca#ital o the com#anyG or

cE a mortgage or charge on any immo6a!le #ro#erty +here6er sitate, or any

interest thereinG or

dE a mortgage or charge on any !oo) de!ts o the com#anyG or

eE a mortgage or charge, not !eing a #ledge, on any mo6a!le #ro#erty o the

com#anyG or

E a oating charge on the nderta)ing or #ro#erty o the com#any, inclding

stoc)&in&tradeG or

gE a mortgage or charge on a shi# or any share in a shi#G or

hE a mortgage or charge on good+ill, on a #atent or licence nder a #atent, on a

trade mar), or on a co#yright or a license nder a co#y rightG or

iE a mortgage or charge or other interest !ased on agreement or the isse o 1

any instrment in the natre o redeema!le ca#italG or

AE a mortgage or charge or other interest !ased on a mshari)a agreementG or

)E a mortgage or charge or other interest !ased on a hirerchase or leasing

agreement or acBisition o fxed assetsG shall, so ar as any secrity on the

com#any


39/96

Index

Provided that $

iE in the case o a mortgage or charge created ot o Pa)istan com#rising solely

#ro#erty sitate otside Pa)istan, 21 days ater the date on +hich the

instrment or co#y cold, in de corse o #ost, and i dis#atched +ith de

diligence, ha6e !een recei6ed in Pa)istan shall !e s!stitted or 21 days ater

the date o the creation o the mortgage or charge as the time +ithin +hich

the #articlars and instrment or co#y are to !e fled +ith the registrar, and

iiE +here the mortgage or charge is created in Pa)istan !t com#rises #ro#erty

otside Pa)istan, the instrment creating or #r#orting to create the mortgage

or charge and a co#y thereo 6erifed in the #rescri!ed manner may !e fled

or registration 3ot-ithstandin# that rther #roceedings may !e necessary to

ma)e the mortgage or charge 6alid or e4ectal according to the la+ o the

contry in +hich the #ro#erty is sitateG and

iiiE +here a negotia!le instrment has !een gi6en to secre the #ayment o any

!oo) de!ts o a com#any, the de#osit o the instrment or the #r#ose osecring an ad6ance to the com#any shall not or the #r#ose o this sub2section

!e treated as a mortgage or charge on those !oo) de!tsG and

i6E the holding o de!entres entitling the holder to a charge on immo6a!le

#ro#erty shall not !e deemed to !e an interest in immo6a!le #ro#erty.

2E 7here any mortgage or charge on any #ro#erty o a com#any reBired to !e

registered nder sub2section (1) has !een so registered, any #erson acBiring sch

#ro#erty or any #art thereo, or any share or interest therein, shall !e deemed to

ha6e notice o the said mortgage or charge as rom the date o sch registration.12. Dty o com#any and right o interested #arty as regards

registration1E It shall !e the dty o a com#any to fle +ith the registrar or registration the

#rescri!ed #articlars o e6ery mortgage or charge created !y the com#any and o

the isse o de!entres o a series, reBiring registration nder section 11, !t

registration o any sch mortgage or charge may !e e4ected on the a##lication o

any #erson interested therein.

2E 7here the registration is e4ected on the a##lication o some #erson other thanthe com#any, that #erson shall !e entitled to reco6er rom the com#any the

amont o any ees #ro#erly #aid !y him to the registrar on the registration.

3E 7hene6er the terms or conditions or extent or o#eration o any mortgage or

charge registered nder sub2section (1) are modifed, it shall !e the dty o the

com#any to send to the registrar the #articlars o sch modifcation together +ith

a co#y o the instrment e6idencing sch modifcation 6erifed in the #rescri!ed

manner, and the #ro6isions o sub2section (1) as to registration o mortgage or charge

shall a##ly to sch modifcation o the mortgage or charge as aoresaid.

3


40/96

Index

132. egistration o #ayment or satisaction o mortgages andcharges

1E It shall !e the dty o a com#any to gi6e intimation to the registrar o the #ayment

or satisaction, in ll, o any charge or mortgage created !y the com#any and

reBiring registration nder section 11 and 1 +ithin 21 days rom the date o the

#ayment or satisaction, in ll, thereo.

2E -he registrar shall on recei#t o sch intimation case a notice to !e sent to the

holder o the charge or mortgage calling #on him to sho+&case, +ithin a time,

not exceeding 1 days, to !e fxed !y sch notice, +hy the #ayment or satisaction

o the charge or mortgage shold not !e recorded.

3E -he registrar shall, i no case is sho+n, order that a memorandm o satisaction

!e entered in the register and shall i reBired rnish the com#any +ith a co#y

thereo.

E 7here case is sho+n, the registrar shall record a note to that e4ect in the

register, and shall inorm the com#any that he has done so.

%E 8othing in this section shall !e deemed to a4ect the #o+ers o the registrar to

ma)e an entry in the register o charges nder section 1%% other+ise than on recei#t

o intimation rom the com#any.

13*. ight to ins#ect co#ies o instrments creating mortgagesand charges and com#any


41/96

Index

Part 0 &Management and /dministrationPart 0 &Management and /dministrationegistered o?ce, P!lication o 8ames, 'tcegistered o?ce, P!lication o 8ames, 'tc

12. egistered o?ce o com#any1E a com#any shall

as rom the day on +hich it !egins to carry on !siness, or

J as rom the 20th day ater the date o its incor#oration,

+hiche6er is the earlier,

ha6e a registered o?ce to +hich all commnications and notices may !e

addressed.

2E 8otice o the sitation o the registered o?ce and o J any change therein shall !e

gi6en

+ithin 20 days

to the registrar +ho shall record the same.

3E -he inclsion in the annal retrn or any other docment o a com#any o the

statement as to the address o its registered o?ce shall not !e ta)en to meet the

reBirements o sub2section ().

E I a com#any ails to com#ly +ith the reBirements o sub2section (1) or (), it shall !e

lia!le to a fne +hich may extend to 2 r#ees or e6ery day dring +hich sch

non& com#liance contines, and e6ery o?cer o the com#any +ho )no+ingly and

+illly athorises or #ermits the dealt shall !e lia!le to the li)e #enalty.

13. P!lication o name !y a limited com#any'6ery limited com#any &

aE shall #aint or a?x, and )ee# #ainted or a?xed,

its name on the otside o e6ery o?ce or #lace in +hich its !siness is carried on,

in a cons#icos #osition,

in letters easily legi!le and in 'nglish or Rrd characters, and also,

i the registered o?ce is sitate in a #lace !eyond the local limits o the ordinary

original ci6il Arisdiction o a Kigh (ort, in the characters o one o the 6ernaclar

langages sed in that #laceG

!E shall ha6e its name engra6ed in legi!le 'nglish or Rrd characters on its sealG

cE shall ha6e its name mentioned in legi!le 'nglish or Rrd characters, in all !ill&

heads and letter #a#ers and in all docments, notices and other o?cial

#!lications o the com#any, and in all !ills o exchange, hndis, #romissorynotes, endorsements, cheBes and orders or money or goods #r#orting to !e

signed !y or on !ehal o the com#any, and in all !ills o #arcels, in6oices,

recei#ts and letters o credit o the com#any.

3*


42/96

Index

1. Penalties or non!lication o name1E I a limited com#any does not #aint or a?x, and )ee# #ainted or a?xed, its name

in manner directed !y this 9rdinance, it shall !e lia!le to a fne +hich may extend

to 2 r#ees or e6ery day dring +hich its name is not so )e#t #ainted or a?xed,

and e6ery o?cer o the com#any +ho )no+ingly and +illly athorises or #ermits the

dealt shall !e lia!le to the li)e #enalty.

2E I any o?cer o a limited com#any, or any #erson on its !ehal, ses or athorises

the se o any seal #r#orting to !e a seal o the com#any +herein its name is not

so engra6e as aoresaid, or isses or athorises the isse o any !ill&head, letter

#a#er, docment, notice or other o?cial #!lication o the com#any, or signs or

athorises to !e signed on !ehal o the com#any any !ill o exchange, hndi,

#romissory note, endorsement, cheBe or order or money or goods, or isses or

athorises to !e issed any !ill o #arcels, in6oice, recei#t or letter o credit o the

com#any, +herein its name is not mentioned in manner aoresaid, he shall !e lia!le

to a fne +hich may extend to 2, r#ees, and shall rther !e #ersonally lia!le tothe holder o any sch !ill o exchange, hndi, #romissory note, cheBe or order or

money or goods, or the amont thereo, nless the same is dly #aid !y the com#any.

1%. P!lication o athorised as +ell as #aid&# ca#ital1E 7here any notice, ad6ertisement or other o?cial #!lication o a com#any

contains a statement o the amont o the athorised ca#ital o the com#any,

sch notice, ad6ertisement or other o?cial #!lication shall also contain a

statement in an eBally #rominent #osition and in eBally cons#icos characters the

amont o s!scri!ed ca#ital and the #aid # ca#ital.

2E /ny com#any +hich ma)es dealt in com#lying +ith the reBirements o sub2

section (1) and e6ery o?cer o the com#any +ho is )no+ingly a #arty to the dealt

shall !e lia!le to a fne +hich may extend to %, r#ees.

3


43/96

Index

(ommencement o @siness !y a P!lic (om#any(ommencement o @siness !y a P!lic (om#any

1*. estrictions on commencement o !siness1E / com#any shall not commence any !siness or exercise any !orro+ing #o+ers

nless$

aE shares held s!Aect to the #ayment o the +hole amont thereo in cash ha6e

!een allotted to an amont not less the minimm s!scri#tionG

!E e6ery director o the com#any has #aid to the com#any ll amont on each o

the shares ta)en or contracted to !e ta)en !y him and or +hich he is lia!le to #ay

in cashG

cE no money is or may !ecome lia!le to !e re#aid to a##licants or any shares or

de!entres +hich ha6e !een o4ered or #!lic s!scri#tion !y reason o any

ailre to a##ly or or to o!tain #ermission or the shares or de!entres to !e dealt

in on any stoc) exchangeG

dE there has !een fled +ith the registrar

a dly 6erifed declaration

!y the chie execti6e or one o the directors and the secretary

in the #rescri!ed orm

that the aoresaid conditions ha6e !een com#lied +ith and

the registrar has issed a certifcate reerred to in sub2section ()G and

eE in the case o a com#any +hich has not issed a #ros#ects in6iting the #!lic

to s!scri!e or its shares, there has !een fled +ith the registrar a statement inlie o #ros#ects.

2E -he registrar shall, on the fling o a dly 6erifed declaration in accordance

+ith the #ro6isions o sub2section (1) and ater ma)ing sch enBiries as he may deem

ft to satisy himsel that all the reBirements o this 9rdinance ha6e !een com#lied

+ith in res#ect o the commencement o !siness and matters #recedent and

incidental thereto, certiy that the com#any is entitled to commence !siness, and

that certifcate shall !e conclsi6e e6idence that the com#any is so entitled$

Provided that, in the case o a com#any +hich has not issed a #ros#ects in6itingthe #!lic to s!scri!e or its shares, the registrar shall not gi6e sch a

certifcate nless a statement in lie o #ros#ects has !een fled +ith him.

3E /ny contract made !y a com#any !eore the date at +hich it is entitled to

commence !siness shall !e #ro6isional only, and shall not !e !inding on the

com#any ntil that date, and on that date it shall !ecome !inding.

E 8othing in this section shall #re6ent the simltaneos o4er or s!scri#tion or

allotment o any shares and de!entres or the recei#t o any money #aya!le on

a##lication or de!entres.%E I any com#any commences !siness or exercises !orro+ing #o+ers in

contra6ention o this section, e6ery o?cer and other #erson +ho is res#onsi!le or

the contra6ention shall, +ithot #reAdice to any other lia!ility, !e lia!le to a fne

not exceeding 1, r#ees or e6ery day dring +hich the contra6ention contines.

30


44/96

Index

*E 8othing in this section shall a##ly to

a #ri6ate com#any,

or to a com#any limited !y garantee and not ha6ing a share ca#ital.

3


45/96

Index

Meetings and ProceedingsMeetings and Proceedings

1%. Stattory meeting o com#any1E '6ery com#any limited !y shares and

e6ery com#any limited !y garantee and ha6ing a share ca#ital shall,

+ithin a #eriod o not less than 3 months, nor more than * months,

rom the date at +hich the com#any is entitled to commence !siness,

hold a general meeting o the mem!ers o the com#any, +hich shall !e called “the

stattory meeting".

2E -he directors shall, at least 21 days !eore the date on +hich the meeting is held,

or+ard a re#ort, in this 9rdinance reerred as “the stattory re#ort", to e6ery

mem!er.

3E -he stattory re#ort shall !e certifed !y not less than 3 directors, one o +hom shall

!e the

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Companies Ordinance 1984 New Syllabus

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