CORP.

& COMMERCIAL LAWS

TOPIC: TYPES OF COMPANIES

Presented To:
Prof. Imran Shahzad

Presented By:

Muhammad Umar (L3f08MCOM5314)

Abdul Haseeb Khan (L3f08MCOM5309)
Nabeel Ur Rehman (L3f08MCOM5327)
Awais Mehmood (L3f08MCOM5330)
Fahhad Rasheed (L3f08MCOM5312)
 TYPES OF COMPANIES

By virtue of
Legal Form
1. STATUTORY COMPANY

2. CHARTERED COMPANY

3. GOVERNMENT COMPANY

4. REGISTERED COMPANY
 TYPES OF COMPANIES

Statutory
 Formed under special statutes
Company  Governed by the Acts or Ordinances

Examples:
 State Bank of Pakistan
 Small Business Finance
Corporation
 Investment Corporation of
Pakistan
 TYPES OF COMPANIES

Chartered
Company  Formed by means of special chartered
stated by Head of State
 Enjoy certain exclusive rights and
privileges on other AOPs.

Examples:
 East India Company
 Chartered Bank of England
 TYPES OF COMPANIES

Government
Company  Company which is not less than 51%
(fifty one percent) of the paid up
capital held by the Govt.
 Subsidiary of a government company
automatically becomes a government
company
 TYPES OF COMPANIES

Registered
Company  Registered in Pakistan under
Companies Ordinance 1984. OR
 Any other previous Companies
Act or Ordinance

Company Limited by Shares [2(8)]

Company Limited by Guarantee [2(9)]

Unlimited Company
 TYPES OF COMPANIES
Registered Company
Limited by
Shares
Whose MOA limits the liabilities of
itsCompany
membersregistered
accordingwithout
to thelimiting
face
Unlimited value of the shares they havethe
the liability of its members to
Company extent of
acquired the company.
in the value of the shares held
by them.

Limited by
Guarantee  Members require to put an
amount in the company account at
the time of liquidation.
 On the start they just require to
give the affidavit as a guarantee.
 TYPES OF COMPANIES

On the basis of
AOA
1. PRIVATE COMPANY

2. PUBLIC COMPANY

3. SINGLE MEMBER COMPANY

 TYPES OF COMPANIES

Private Ltd
Company  Restricted the right to transfer its
shares.
 Maximum number of members is 50.
 Prohibits any invitation to the public
for shares or debentures of the
company.
 TYPES OF COMPANIES
Public
 Registered under Companies
Company Ordinance 1984.
 Minimum number of members is
Public Listed seven and no limit of maximum
number of members.
 Freely float its shares and should be
Public Unlisted registered in any Stock Exchange in
Pakistan.

Whose Securities are to be trade On a Stock

Exchange

Whose Securities are not allowed to be trade

On a Stock Exchange
 TYPES OF COMPANIES

Single member
Company  An SMC shall have only one
member. However, it can be
converted into two-member private
company just by inducting another
person as a member.
 Transfer of shares is restricted and
shall be at' the will of single member
only. A nomination form would be
filed by the single member for the
purpose.
 TYPES OF COMPANIES

On the basis of
Composition of Share
Holding

1. HOLDING COMPANY

2. SUBSIDIARY COMPANY

3. ASSOCIATED COMPANY
 TYPES OF COMPANIES

Holding
Company  A company or a body corporate
holds more than 50% in the voting
securities of the company. (directly
or Indirectly)
OR
 Has a power to elect and appoint
more than 50% of the directors of
such other company.
 TYPES OF COMPANIES

Subsidiary
Company  A company or a body corporate
whose more than 50% voting
securities are held or controlled by
some other company (directly or
Indirectly).
OR
 Such other company has a power to
elect and appoint more than 50% of
the directors of such company.

Note:
If the holding company is subsidiary of an other company ,
every company which is subsidiary of such holding company
will automatically become the subsidiary of that another
company.
 TYPES OF COMPANIES

Associated
Company  A company whose 20% or more
equity shares (upto 50%) are held by
another company. OR
 If 20% of the directors present both
the companies. OR
 If a share holder have 20% or more
(upto 50%) of any two companies,
both are considered Associated
companies.
 TYPES OF COMPANIES
REGISTERED COMPANIES

Unlimited Limited by Guarantee Limited by Shares

Companies Companies Companies

Having Share
Capital
Private Company Public Company

Listed Company
SMC

Not Having
Share Capital
Other than SMC Unlisted
Company
THE END
THANK
YOU