Business Law

Assignment 4
Rida Ali- Sec B

A limited liability corporation (LLC) is a business framework in which the shareholders are
not directly responsible for the obligations or liabilities of the company. LLCs are mixed
entities that blend the advantages of a company with those of a partnership or a sole
proprietorship. One of the most important advantages of an LLC is that its members have
"limited liability," which ensures that they are not personally liable for the LLC's debts and
liabilities. LLCs aren't bound by the same rules as corporations, but that doesn't mean they
are not useful. An LLC covers you by allowing for growth and progress, whether you're a
one-person company or a massive organization with hundreds of employees. An LLC does
not require any special meetings, detailed corporate records, or other formalities. Limited
liability partnerships are also tax-friendly, with a range of strategies to assist you in
developing an effective tax policy.

The private sector, especially the limited liability company, which is said to be the greatest
invention of modern times, has served in many sectors of society and governance. In the
developed world, the private sector employs about 90% of the population (both formal and
informal jobs), supplies vital goods and services, and contributes to tax collections and the
effective transfer of capital. Private companies, especially limited liability corporations,
handle education, healthcare, and telecommunications effectively.

Looking back, Pakistan's economy was primarily dependent on private industry at first, but
major parts of it, such as financial services and transportation, were nationalized starting in
the early 1970s. In the 1980s, under the reign of Zia ul-Haq, further reforms were made. In
particular, a “Islamic” economy was implemented. Though certain aspects of the Islamic
economy have remained in place, the state started privatizing vast parts of the nationalized
economy in the 1990s, in whole or in part. In Pakistan and most developed nations,
government authorities and institutions refuse to offer basic infrastructure and facilities to
households. Pakistan has a mixed economy in which big decisions are made by the
government and private industry, and the economy is managed by each of these industries. In
general, large companies have created limited liability corporations, which operate in nearly
all sectors of the economy with the assistance of public authorities and government. Energy
projects, education, healthcare, and telecommunications are examples of these industries.

The distinction between developed countries and Pakistan is that regulatory agencies in
developed countries have a strong impact and play a significant role in the oversight and
check and balance of private sector operations to ensure that citizens' interests are protected.
However, since there are no such authorities in Pakistan to uphold law and order, limited
liability corporations do not operate hand in hand with the government. Rather, they diverge
from the goal of providing people with healthcare and education services and make profit
maximization their sole purpose.

Private business management using SMART rules is one way to get the private sector to
deliver as required. Because of the challenges in focusing entirely on a command-and-control
paradigm, a softer approach to routine regulation is preferable. Because Health workers often
go on strike, causing service disruptions. SMART regulations spread the compliance
workload through states, trade societies, accrediting institutes, and patients themselves, rather
than relying on a central regulator.

Unfortunately, regulatory shortcomings sometimes lead to further legislation, and the

underlying causes of failure are hardly ever investigated. Failure can be affected by a number
of influences. To begin, economic regulation necessitates understanding of an industry's cost
and demand structure, which regulators often neglect. Second, manufacturers are finding it
increasingly difficult to comply with the complex and technological regulations.

As per corporate law, these corporations only serve the capitalist and upper strata of society.
In Pakistan, corporate responsibility and corporate social responsibility are lacking, with the
majority of capitalists receiving little benefit and just a few capitalists gaining from such huge
corporations. In relation to developing countries where their is check and balance, the
corporate sector of Pakistan has failed to live up to the expectations of the state and the
individual citizen. In such circumstances, enforcing law and order, ensuring of justice, and
other forms of public service cannot be delegated to such corporations.

As a developing country, Pakistan's government is responsible for providing protection to its

people both internally and externally, maintaining law and order, dispensing prompt and
equal justice, and providing basic social services such as education, health, maintain
macroeconomic stability. They are responsible to both the government and the country's
people.