COMSATS University Islamabad…

recruitment@purefoodscompany.com
Sahiwal Campus
Sessional-II

Paper:

Corporate Law

Submitted by:

Muhammad Mudassar

Student Registration No:

FA17-BBA-078
Submitted To
Syed Iftikhar-ul-Hassan Shah
Lecturer
Department of Management Sciences
Submission Date:
21-07-2020

COMSATS University Islamabad, Sahiwal Campus

COMSATS Road, off G. T Road, Sahiwal.
Phone: 040-4305001-7
Question #1

 The business that I want to start is Shoes Bae.public.Ltd in which I want to provide the
facility of customers to order for shoes in a customize form. They can also send the article for
order to buy that type of leather shoes.

 So to build a new business there should need of proper rules and regulation to survive in
market and you have to register yourself in legal way. I should need to make a full business
plan with full description.

Prospectus of a Company:

Prospectus is a valuable document issued by the company for raisin of the capital.
Prospectus has been defined as “any document described of issued as prospectus and includes any
notice, circular, advertisement or other communication, inviting offers from the publish for the
subscription or purchase of any shares.”

 The prospects will contain the following things which explain the organization in a full way.

 Capital structure.

 Information about the company management 

 Details about the project

 Financial information 

 Commission, brokerage and tax exemptions

Contents of prospects:

There are some points that highlight the contents of prospects which are given below:

 The contents of the Memorandum

 The qualification shares of the Directors

 No. of redeemable preference shares:

 Remuneration of the Directors and Promoters

 The names, descriptions and addresses of the Directors and Managing Directors

 The Minimum Subscription:

 Time of opening

 Names and Addresses

 Underwriting Commission, Brokerage 

The contents of the Memorandum:

It expresses the name of the company, objects, nature of business, share capital and its division,
liability of members, names.

The name of my company is ShoesBae.Public. Ltd and its nature of business is facilitating the public
with different quality shoes

The qualification shares of the Directors:

The qualification of director is graduation where he knows how to run and handle all situations
carefully.

No. of redeemable preference shares:

Particulars regarding debentures and redeemable preference shares with their date of redemption
must be stated. As about my company the share I issue is 1 billion.

Remuneration of the Directors and Promoters:

As the prospectus must have the rate of remuneration for attending meetings and for other services of
the Directors and Promoters. I will conduct meeting regarding our business.

Question #2
 A blank transfer of stock or shares is a transfer where the name of the transferee has not been
filled in, or which is undated.

 It is sometimes used when shares are given as security for a debt, the intention being that if
default is made in payment, the lender may fill in his own name, as transferee, or insert the
date, and send the instrument forward for registration.

 If a blank transfer is to be held unstamped, it should not be dated, otherwise it cannot, after
thirty days from execution, be stamped except under a penalty.

 A blank transfer, however, in those companies where the transfer must be under seal, is not a
very satisfactory security.

 To enable a blank transfer under seal to be effectually completed, the blanks should be filled
in in the presence of the transferor, or by his authority under seal, or the deed should be re-
delivered by him.

Question #3

 As about a meeting of BODs, the directors presented an agenda on the issue of shares at
discount. Generally, a Company is not allowed to issue shares at a discount, at a price less
than the face value of the shares.
  However, if a Company wants to raise capital by way of issuing shares at discount, the buyer
is required to pay less amount than the face value, then the shares are said to have been issued
or sold at a discount.

 Such type of issue of shares at discount is subject to the following conditions:

 The shares to be issued at a discount must be of a class already issued.

 The issue must be authorized by a resolution passed by the company in General Meeting and
sanctioned by the Company Law Board.

 Rate of discount should not be more than 10%.

 One year must have passed since the date at which the Company was allowed to commence
business.

 The issue of such shares must take place within two months after the date of court’s sanction
or within such extended time as the Court may allow.

Question #4
 Federal bankruptcy laws govern how companies go out of business or recover from crippling
debt. A bankrupt company, the "debtor,"

 Bankruptcy Code to "reorganize" its business and try to become profitable again.
Management continues to run the day-to-day business operations but all significant business
decisions must be approved by a bankruptcy.

 As about the Al-Saud, it invested the 80% amount to purchase the contracted the properties
and it is moving towards the bankruptcy. Due to this situation he can claim the assets and
land required.

 It keeps all the legal documents that are about the such situation. Due to which at liquidation
time the Al-Saud need permission to Mr. Ahmad Rampur. So at the time of liquidation he can
claim the required documents.

 The remaining amount of 20% can be claimed in the court and can get in the bank.

 Company should have the crystalize the floating charge into the fixed charges .The benefit
of crystalize is that the floating charges become more protective.