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Corp. & Commercial Laws: Topic: Types of Companies
Corp. & Commercial Laws: Topic: Types of Companies
Presented To:
Prof. Imran Shahzad
Presented By:
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
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
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.
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
Having Share
Capital
Private Company Public Company
Listed Company
SMC
Not Having
Share Capital
Other than SMC Unlisted
Company
THE END
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YOU