Corporate Law Assignment

By: Syed Muhammad Shuja

2013389
B
Q1. Can a single Share Holder bring a claim is the court against
the promotor?
Ans. According to section 292 of companies ordinance 1984 to go
to the court against misconduct of company management one
must have at least 20% shares.
Q2. What rights does the promotor have (Pre-incorporation
contract) and any other alternatives used by promotors?
Ans.
Assesse not in existence at time of assessment - Not liable to
any tax - company could not be taxed in respect of business
carried on by promoters before date of its incorporation.
(Messrs Haripur Rosin & Turpentine Factory Ltd., Lahore vs.
Commissioner of Income Tax, North Zone. 1973 PTD 297
Lahore-High-Court-Lahore)
Promotion of a company by any person does not lead to
conclusion that he can be termed as its owner-company has
its own separate legal entity from its promoters and
shareholders. (Muhammad Anwar vs. Muhammad Iqbal. 1984
CLC 103 Karachi-High-Court-Sindh)
Contracts entered into by the promoter of a corporation can
be binding on the corporation without formal adoption of such
contracts by the corporation in certain instances (McArthur v.
Times Printing Co. (US))