Types of Companies, Meetings and important documents for company registration

1

Assignment

Types of Companies, Meetings and important

documents for company registration

Business Law

Fahad ur Rehman Khan (1496)

Iqra University

Submitted to Syeda Nazneen Waseem

Types of Companies, Meetings and Documents 2

Types of Companies

There are the following main types of companies are present in Pakistan, these are

following types of companies are existing;

Private Company:

Private Company, is characterized in section 3(1)(iii) of the Act may issue stock and

have shareholders. However, their shares do not trade on public exchanges and are not

issued through an initial public offering. In general, the shares of these businesses are less

liquid and the values are difficult to determine.

Public Company:

Public Company, is defined in section 3(1)(iv) of the Act and it means a company

which; is not a privately owned business; has a base paid-up capital of five lakh rupees or

such more generously compensated up capital, as may be endorsed; is a privately owned

business which is an auxiliary of an organization which is not a privately owned business.

Government Company:

Government Company, is characterized in segment 617 of the Act and it implies any

organization in which at the very least fifty-one for every penny of the paid-up offer capital

is held by the Central Government, or by any State Government or Governments, or

incompletely by the Central Government and somewhat by one or more State Governments

and incorporates an organization which is an auxiliary of a Government organization as in

this way characterized.

Foreign Company:


Foreign Company, is characterized in section 591 of the Act and it implies an

organization which;

a. is consolidated outside India and

b. has built up a position of business inside of India.

Unlimited Company:

Unlimited Company, is characterized in section 12(2)(c) of the Act and it implies an

organization not having any breaking point on the obligation of its individuals. The

obligation of a part reaches out to the entire measure of organization's obligations and

liabilities however the part will be qualified for case commitment from different individuals.

Producer’s Company:

Producer’s Company, is characterized in segment 581A of the Act and it implies a

body corporate having objects or exercises determined in segment 581B and enlisted as

Producer Company under this Act.

Limited Liability Partnership (LLP) Company:

Limited Liability Partnership, It might be noticed that LLP is not a Company under

the Companies Act, 1956 but rather it is characterized under segment 2(1)(n) of the Limited

Liability Partnership Act, 2008 as an "organization framed and enlisted under the Limited

Liability Partnership Act, 2008". LLPs are certain to pay Income Tax under IT Act on lines

like general associations. They are not required to pay profit dissemination impose or extra

charge.

Types of Meetings

Statutory Meeting:


An open organization restricted by shares or a certification organization having offer

capital is required to hold a statutory meeting. Such a statutory meeting is held just once in

the lifetime of the organization. Such a meeting must be held inside of a time of at the very

least one month or inside of a period not over six months from the date on which it is

qualified for start business i.e. it acquires declaration of beginning of business. In a statutory

meeting, the accompanying matters just can be talked about:

a. Floatation of shares/debentures by the organization

b. Change to contracts specified in the plan

A notification of no less than 21 days before the meeting must be given to

individuals unless agree is concurred to a shorter notification by individuals, holding at least

95% of voting rights in the organization.

Annual General Meeting:

Must be held by each sort of organization, public or private, restricted by shares or

by insurance, with or without offer capital or boundless organization, once per year. Each

organization must in every year hold a yearly broad meeting. Not over 15 months must slip

by between two yearly broad gatherings. Notification of the meeting: as per sec.17 (1) of the

section.

Extraordinary General Meeting:

In a few settings, this is known as a Special General Meeting or an Emergency

General Meeting. An Extraordinary General Meeting, normally condensed as EGM, is a

meeting of individuals from an association, shareholders of an organization, or

representatives of an official body, which happens at an unpredictable time.

Class Meeting:


Class gatherings are gatherings which are held by holders of a specific class of

shares, e.g., inclination shareholders. At such gatherings, these individuals examine the

advantages and disadvantages of the proposition and vote as needs be. Class gatherings are

held to pass determination which will tie just the individuals from the class concerned, and

just individuals from that class can go to and vote.

Important documents for registration of company

Organizations remain the most supported type of business associations in Pakistan

particularly for medium and substantial scale business endeavors. Lawful administration for

foundation and regulation of organizations in Pakistan is given in the Companies Ordinance,

1984. While the capacity of organization of these organizations is vested in the Securities

and Exchange. Commission of Pakistan and the Registrar of Companies selected by the

Securities and Exchange Commission of Pakistan for a Province of Pakistan where such

organization is to be enrolled.

Memorandum

The reminder affirms that the endorsers wish to shape an organization under the

Companies Act and consent to end up individuals from the organization. The notice, which

incorporates an announcement of consistence, must be conveyed to Companies House

together with an application for enlistment of the organization and the new organization's

articles of affiliation. Before the Companies Act 2006 came into power an organization's

update included procurements which now fall inside of the articles, including any

confinements on what the organization could do. For organizations framed before 1 October

2009 these confinements are presently regarded as being a piece of the articles of affiliation

and not the notice.


Things included in a memorandum;

The heading a summary of the relevant facts

Identification of the legal issues

A discussion of the law relevant to the legal issues

Application of that law to the facts a conclusion that is responsive to the legal

issues.

Prospectus

A formal authoritative report, which is required by and documented with the

Securities and Exchange Commission, that gives insights around a venture offering available

to be purchased to general society. Segment 2 (36) of the Companies Act characterizes

outline as ought to contain the truths that a financial specialist needs to settle on an educated

venture choice. Otherwise called an "offer document." A record containing point by point

data about the organization and a welcome to the general population subscribing to the offer

capital and debentures is issued. This record is called 'plans. Privately owned businesses

can't issue a plan in light of the fact that they are entirely restricted from welcoming general

society to subscribe to their shares.

The accompanying matters are to be unveiled in a plan:

• Name and full address of the organization.

• Full particulars about the signatories to the reminder of affiliation and the quantity

of shares taken up by them.

• The number and classes of shares. The enthusiasm of shareholders in the property

and benefits of the organization.


• Name, location and occupations of individuals from the Board of Directors or

proposed Directors.

The time of opening of the subscription list.

The nature and extent of interest of every promoter in the promotion of the company.

The amount payable on application, allotment and calls.

The particulars of preferential treatment given to any person for subscribing shares or

debentures.

Particulars about reserves and surpluses.

The amount of preliminary expenses.

The name and address of the auditor.

o Particulars regarding voting rights at the meeting of the company.

Article of Association:

The articles of affiliation set out how the organization is run, administered and claimed.

The articles can put confinements on the organization's forces – which may be valuable if

shareholders need comfort that the executives won't seek after specific game-plans, at any

rate without shareholder endorsement. It is an open record, the shareholders might go into a

shareholders' consent to enlarge the articles in connection to the running, administration and

responsibility for organization that they need to keep out of people in general space.

Things included in article of association;

Liability of members;

Directors’ powers and responsibilities;

Directors’ meetings, voting, delegation to others and conflicts of interest;

Retaining records of directors’ decisions;


Appointment and removal of directors;

Shares, unless a limited by Guarantee Company;

issuing shares;

different share classes;

share certificates;

share transfers;

Dividends and other distributions to members;

Members’ decision making and attendance at general meetings;

Means of communication;

Use of the seal, if applicable; and

Directors’ indemnity and insurance.