Presentation on Company Name: Roll # Umbreen Anjum 2920 Company • A company is an association or collection of individuals, whether natural persons, legal persons, or a mixture of both.Company members share a common purpose and unite in order to focus their various talents and organize their collectively available skills or resources to achieve specific, declared goals. Types of companies There are following types of companies; • Statutory company • Charted company • Government company • Single member company • Registered company Statutory Company • The companies which are formed under special statutes are termed as statutory companies. • These are public enterprises brought into existance by a special act of the parliment. The act defines its powers and function, and regulations governing its employees and its relationship with government departments • These are governed by the Acts or Ordinance through which these are created. • Example of such type of companies is the; • State Bank of Pakistan • Small Business Finance Corporation • Investment Corporation of Pakistan etc. • A statutory corporation is a corporation created by statute Charted Companies • Chartered companies are formed by means of a special charter granted by the head of state, or King or Queen of the Crown.Normally these enjoy certain exclusive rights and privileges on other associations of persons. • The East india company and the Charted Bank of England are the examples of such type of companies • A charted company is an association formed by investors or shareholders for the purpose of trade, expolartion and colonization • Charted companies were usually formed incorporated and legitimized under a royal or in republics, an equilvent government charter this document set out the terms under which the company could trade ; defined its Boundaries of ifluence, and describes its rights and responsibilities Government Company • .A government company is a company of which not less than 51% (fifty-one percent) of the paidup capital is held by the Government. A company which is a subsidiary of a Government company automatically becomes a Government company. • The defining characteristics are that they have a distinct legal form and they are established to operate in commercial affairs while definitional issue , it is difficult to become categorically what level of state ownership would qualify to an entity to be considered as “state owned” since governments can also own regular stock, without implying any special interference Single Member Company • Single Member company (SMC) has been introduced through companies ordinance 2002 The single member company shall have all the rules rights and privilages as well as Obligations and liabilities as other private company has • Registered Company; • Registered companies are those companies which are registerd in pakistan under the companies ordinance 1984 or any other previous companies act or ordinance. • A corporation that has filed a registration statement with the security Exchange commission prior to releasing a new stock issue • Registered companies are further classified into the following three broad classification: • • • • • Company limited by shares Companies limited by Guarantee Unlimited company Company Limited by Shares; It means a company whose memorandum of association limited the liabilities of its members to the amountas the members may respectively under take to contribute to the assets of the company in the event of its winding up. • In such a company the shareholders Obligation is to pay the company for the shares they have taken in it. The indiviual puts the money into the company , and in return the company gives it a percentage of ownership , in the form of shares • Once the shares are fully paid for ( and this would usually be the case with a private limited company) No further money is payable by the sharesholders. Thier liability to the company is satisfied.If the shares are issued unpaid (which can sometimes be the case for variety of reasons). Company limited by shares includes two categories ; • Private limited company • Public limited company Private Limited company • Private limited company prohibits any kind of invitation to general public to subscribe for its any shares and any amount to the company in that respect • Public Company; • A company other than a company registered as private limited company is called public limited company. • Companies’ordinance defined certain conditions for public limited companies which are as under: • A company registered as public limited company does not impose any restrictions on the number of members that the company can have. • A Public company is a company which does not impose any restriction on the right of transfer of its shares. • Public company can be further classified into two categories; • • • • Listed Company Unlisted Company Listed Company; Listed company is the company which has its shares listed on any stock exchange. Pakistan at the moment companies are listed on three stock exchanges of the country namely • Karachi Stock Exchange • Lahore Stock Exchange • Islamabad Stock Exchange Unlisted Company • Unlisted Public 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 • Company Limited by Guarantee; • It means a company whose memorandum of association limited the liabilities of its members to the amountas the members may respectively undertake to contribute to the assets of the company in the event of its winding up. • This company may or not have a share capital. • In a company limited by guarantee,there are no shares - hence there are no shareholders. Instead, the company will have 'members'. The members of a company limited by guarantee are bound by a guarantee inthe company's articles of association,which requires them to pay the company's debts up to a fixed sum Unlimited Company • . It is a company which is registered without limited the liability of the members to the extent of the value of the shares held by them. Now-a-days such type of companies is not found in Pakistan. How to Register a New company in Pakistan ??? Steps and Requirments According to the company Ordinance 1984 the process of company Formation is divided into 4 stages Stages in the formation of company Promotion Stage Incorporation Stage Subscription Stage Commencement Stage Promotion Stage ( 1st Stage ) Promotion means to start the business it is the first stage in the formation of company that people who take inetial steps in the formaton of company are called promoters these people prepare the legal documents and takes step for its registration the promoters shall have to observe the legal formalities drafting the following documents… Documents • Memorandum of association; An important step in the formation of a company is to prepare a document called Memorandum of Association. It is the charter of the company that contains the basic conditions on which the company is incorporated Contents of Memorendum • Name it is the legal requirement that a company must state the name of the company • Address a company is required to state the name of the province in which the office is situated its also necessary to give the exact address and name of the city where the company is located • Liability this Claus show the nature of the liability of the members.etc.. Artical of Association • These are the regulations that govern the internal management affairs of the company and the conduct of its business. • The Articles are subordinate to the Memorandum of Association. Contents of Articales of Association • Amount of share capital issued • Rights of shareholders regarding voting dividend return of capital. • Rules regarding issue of shares and debentures. • Procedure of transfer of shares. • Rules regarding appointment of directors, managing directors, agents and secretaries • Numbers ,qualification, power and liabilities of directors • Rules regarding to the winding of the company • Matters related to the account and audit etc… Incorporation (2nd Stage) • The second stage for formation of company is to get the company registered. for registration of company following documents are submitted registrar for the registration of company. • Memorandum of association • Article of association • Nominal capital • Qualification of shares • List of directors • Declaration • If the registrar is satisfied with documents then he will issue certificate of incorporation private limited company can start its business after receiving certificate of incorporation. but a public limited company wait for certificate of commencement Issue of prospectus Or Subscribtion (3rd stage) • After the receipt of certificate of incorporation the promoters issue prospectus of the company with a copy of application form for share. Prospectus shows the rules regarding purchase and sale of share and about the mode of payment. A copy of prospectus should be submitted to the registrar. Commencement Stage (4th Stage) • A public company has to received the certificate of commencement before starting the business. • A company submits the following documents to registrar. • Prospectus • Minimum subscription • Directors shares • After verifying these documents registrar issue a certificate of commencement they can start the business. SECP • Securities and Exchange Commission of Pakistan established under the Pakistan Act 1997 • It was operational as a body Corporate on 1st January 1999. • important functions of the SEC is registration of companies. • This task has been entrusted to the Registration Department, Company Law Division which has its field offices known as Company Registration Offices (CROs).
