COURSE

INTRODUCTION - LAW ì
SESSION 2

Course Instructor: Shahzeb Shaikh

Course Title: Corporate & Business Law
Email: shahzeb.shaikh@gmail.com
Cell: 03002151004
Dated: 24th January, 2021
 DISCUSSION TOPICS
ì  Law as the Foundation of Business

ì  Law, the Rule of Law and Property

ì  Classifications of Law

ì  Sources of Law

ì  Legal Sanctions

ì  Corporate Governance

ì  Legislative Process in Pakistan

ì  The Court System of Pakistan

 LAW
“The system of rules which a
particular country or community
recognizes as regulating the
actions of its members and
which it may enforce by the
imposition of penalties” –
Oxford Dictionary

“Law is a set of rules and

regulations enforced by the
state through its institutions
which is binding upon human
society.”


LAW, THE RULE OF LAW AND PROPERTY

ì  In the modern world, it is important to implement

the law in any nation with the will of the people.
ì  Property is an ownership of a person legally
without the interference and rights of the State
ì  Owner has the liberty to use his property for his
interest not contrary to the law of land. (Art.24 of
1973 Constitution)
ì  The property based legal system that enables such
control by allowing people to exclude others from
interfering with what their efforts produce.
LAW, THE RULE OF LAW AND PROPERTY

ì  Contract Law enables the owner to exchange and

use his property for business and commercial
purpose.
ì  Regulatory law both protects ownership and said
limits on private resource use for the property
purpose.
 CLASSIFICATION OF LAW

ì  Substantive Law

ì  Procedural Law

ì  Civil Law

ì  Criminal Law

ì  Public Law

ì  Private Law
 SUBSTANTIVE LAW

ì  Substantive law is a statutory written law that

governs rights and obligations of those who are
subject to it.
ì  Substantive law defines legal relationship of
individuals with each other or between them and
state.
ì  Substantive law stands in contrast to procedural
law which comprises the rules by which a court
hears and determines what happens in civil or
criminal proceedings.
 PROCEDURAL LAW
ì  Procedural law deals with the method and means
by which substantive law is made and
administrated.
For example: A specific time allowed for one party
to sue another and rules of law governing the
process of the litigation.
ì  Substantive law defines crimes and punishments
and civil rights and responsibilities in civil law and
criminal law.
ì  It is codified in legislated statutes (Acts) or can be
enacted through the Presidential Orders
(Ordinance).
 CIVIL LAW

ì  Civil law deals with matters other than criminal law.

For example:
A suit for breach of contract, tort cases, commercial
litigations, and cases for compensation of damages.
ì  Civil cases may include suits for breach of contract
or tort cases such as suits for personal injuries
under tort law. In such case there is always an
element for compensation of damages in term of
money as relief. At this stage, it does not involve
punishment for accused.
 CRIMINAL LAW

ì  Criminal law is also called penal law. It covers

punishments and penalties for crimes committed
by any person against any person or state.
ì  Criminal punishments depend on gravity of crime.
In extreme cases like murder, the capital
punishments like sentence to death (execution) or
life time imprisonment may be awarded.
 PUBLIC LAW

ì  Public law governs the relationship between

individuals, organizations, corporations, and the
state.

ì  Civil law, criminal law, administrative law,

procedural law are the sub-divisions of public law.
 PRIVATE LAW
ì  Private law deals with relationship of individuals to each
other.
ì  Private law covers law of contract, tort, obligations and rights.

ì  Private law also covers private relationship between

governments and private individuals based on law of contract
or law of tort
ì  It is distinguished from public law which deals with law
involving the state including regulatory statutes, criminal law,
and other laws.
ì  Public law involves interaction between general public and
state while private law involves interactions between private
citizens.
 SOURCES OF LAW

ì  Sources of law are the material and processes out

of which law is developed.

ì  Three basic sources of law

ì  Constitution

ì  Statutes

ì  Case Laws
 CONSTITUTION

ì  Constitution is a system for state governance and

codified as a written document that provides the
framework for running the affairs of state through rules,
regulations, and principles.

ì  It is the Supreme Law of the Land.

There are two type of constitutions:

ì  Written constitution (Pakistan, USA, India etc)

ì  Un-written constitution (UK, Saudi Arabia, Israel etc).

 STATUTES

ì  Statute is a set of written enactment of a legislative

authority that governs specific affairs of state.

ì  Statutes are the result of parliamentary legislation

as Acts. For e.g. Contract Act, 1872

ì  Statutes basic function is to command or prohibit

acts.

ì  Statutes are primary source of law.

 CASE LAWS

ì  Case law is judge-made law.

ì  Judge interprets law, statutes, and regulations.
ì  If a lower court judge acts against any precedent
and that judgment is not challenged in higher
court that judgment will stand active.
ì  A court may rule against a precedent that is
outdated and ground realities are changed.
ì  A court may over rule its own previous judgment.
 CASE LAWS

ì  A court may review its own decision and may pass

order vice versa of previous decision.
ì  Court may take suo moto notice of any
government discriminatory decision or action that
is contrary to law
 LEGAL SANCTIONS

ì  For the rule of the law, it is the duty of State to

implement the law in the society without any
distinction.
ì  Law Enforcement Departments are responsible to
ensure the compliance of law, while court use
several methods to encourage or to force
compliance with the obedience to the law,
generally it is known as SANCTIONS which may be
used against any person or department who has
failed to comply with the law.
 LEGAL SANCTIONS

ì  The sanctions also have a preventive sanction

because it usually results in compliance with the
requirements of law implemented by the State.

ì  For this purpose punishment is used to ensure the

true compliance of laws in the democratic society.
 CORPORATE GOVERNANCE

ì  Corporate governance is the set of laws and rules

monitoring and administrating the business
organizations in the corporate sectors

ì  The Business Organization being regulated by the

Government Regulatory Authorities through legal
system.

ì  Corporate Governance deals with the laws

protecting the owners of a business organizations
from the Managers who run their business.
LEGISLATIVE PROCESS IN PAKISTAN
 LEGISLATURE

ì  Commonly called Parliament (UK, India, Pakistan),

Majis-i-Shoora (Pakistan), Congress (USA)

ì  Different functions in various states.

ì  In a despotic or autocratic government, the

legislature is either non-existent or at the most a
non-power consultative body

ì  Most important in the Parliamentary form of

government in cases of UK, Pakistan, India etc.
ORGANIZATION OF LEGISLATURE

ì  Unicameral legislature – consisting of single house

or chamber.

ì  Bicameral legislature – consisting of two houses;

Lower House or the First Chamber. In Pakistan, its
called National Assembly, in UK, House of Commons
(HoC), in USA, House of Representatives. The Lower
House is the popularly elected and has greater
importance in the parliamentary form of government.
The other house is called the Upper House or Second
Chamber. This is usually the symbol of Federation and
has equal representation from all areas of the country.
LEGISLATIVE PROCESS IN PAKISTAN
LEGISLATIVE PROCESS IN PAKISTAN

ì  The Chief function of every legislature is to make laws.

ì  It passes new laws, or amend or repeals old ones, when

they become obsolete or when so required.

ì  A law is first presented before the legislature as a bill.

ì  It goes through several stages of debate and deliberation

in the legislature, called the legislative procedure.

ì  In case it is accepted by the majority of its members at

every stage, it is considered passed by it.
LEGISLATIVE PROCESS IN PAKISTAN

ì  In usual practice, a bill is initiated from the Lower

House, however, it can be vice versa except in the
case of Finance Bill.
ì  If one House rejects it with a reason, it is again
brought in the Houses for re-deliberation.
ì  It is to be noted that Upper House can only reject a
bill thrice until it becomes a law.
ì  The amendment in the Constitution is only possible
with 2/3rd majority.
LEGISLATIVE PROCESS IN PAKISTAN

ì  It is then placed before the Head of the State

(President in Pakistan) for his ascent and signature,
and becomes an act or law.

ì  It is then enforced by the Executive organ of the

state and interpreted by the courts.

ì  State expresses its will of people through

legislature.
 ì
THE COURT SYSTEM IN PAKISTAN
 PERSONNEL

ì  The individuals who are working in courts are

called “JUDGES” or “MAGISTRATES”
ì  Basic functions of the Trial Judge is to determine
the applicable laws to be used to decide the case.
ì  The laws and rules may be procedural or
substantive.
ì  Judges are the main link between the law and the
civil society as they render decisions that deal
directly with the people in conflict.
THE COURT STYSTEM IN PAKISTAN
ì  Pakistan's judicial system stems directly from the system that was used
in the British India.

ì  Supreme Court is the Superior Court in Pakistan.

ì  The Supreme Court of Pakistan has Original, Appellate, and Advisory

jurisdictions.

ì  The President of Pakistan appoints the Chief Justices and Justices of

Supreme Court and High Courts. Each Province and Federal Capital has
a High Court.

ì  Below the High Courts are Tribunals and Special Courts and District and
Session Courts, and below these are subordinate courts like Civil Courts
on the civil side and Magistrates Courts on the criminal side.
THE COURT STYSTEM IN PAKISTAN

Court system in Pakistan is made up of many courts

with different jurisdiction. Pakistan has three level of
Federal Courts and three division of Lower courts.

ì  Superior Courts

ì  Higher Courts

ì  Lower Courts
SUPREME COURT OF PAKISTAN

ì  The Supreme Court of Pakistan is the apex court in

the judicial hierarchy of the country and is
comprised of the Chief Justice and 20 Judges.

ì  The permanent seat is at Islamabad, but the court

also sits, from time to time, at the provincial
headquarters namely Karachi, Lahore, Peshawar
and Quetta.
SUPREME COURT OF PAKISTAN

ì  The Constitution stipulates the qualifications of

Judges of the Supreme Court. Such qualifications
are: to be a citizen of Pakistan and having 5 years
experience as Judge of a High Court or 15 years
experience as a practicing advocate of a High Court.
ì  The most senior Judge, in the absence of 'solid and
strong reasons', is recommended by the Judicial
Commission of Pakistan and appointed by the
President, is appointed as the Chief Justice of
Pakistan
JUSRISDICTION OF SUPREME COURT OF
PAKISTAN
ì  184(1) Original jurisdiction in inter-governmental disputes,
issues declaratory judgments;
ì  184(3) Enforcement of Fundamental Rights involving an
issue of public importance;
ì  Art 185(2) Appeal from judgment/order of High Court in
criminal cases, tried in original and/or appellate capacity and
having imposed death penalty or life imprisonment;
ì  Art 185(2) Appeal when High Court certifies that the case
involves interpretation of the Constitution;
ì  Art 185(3) Appeal (subject to grant of leave) from High Court
judgment/order;
JUSRISDICTION OF SUPREME COURT OF
PAKISTAN
ì  Art 186 Advisory jurisdiction on any question of law
involving public importance referred by the President;
ì  Art 187 To issue directions/orders for doing complete
justice in a pending case/matter;
ì  Art 188 To review any of its own judgment/order;
ì  Art 204 To punish for its contempt;
ì  Art 212 Appeal from Administrative courts/tribunals;
and
ì  Art 203F Its Shariat Appellate Bench hears appeals from
judgments/orders of Federal Shariat Court.
FEDERAL SHARIAH COURT (FSC)
ì  The Federal Shariat Court was established through
Presidential Order in 1980.
ì  It is comprised of Chief Justice and 8 Muslim judge.
ì  It has jurisdiction to examine any law that may be
repugnant to the “injunctions of Islam, as laid down in
the Holy Quran and the Sunnah." If a law is found to be
'repugnant', the Court is to provide notice to the
government concerned specifying the reasons for its
decision.
ì  The Court also has jurisdiction to examine any decisions
of any criminal court relating to the application of
Hadood penalties. The Supreme Court also has
empowered to review the decisions of the Federal
Shariat Court.
THE POWER OF JUDICIAL REVIEW

ì  The Supreme Court of Pakistan has the power to

review judgments passed by the Supreme Court
itself.

ì  In USA, the Supreme Court has also the power to

review laws passed by the Congress and to declare
them to be unconstitutional.
 THANK YOU!

ANY QUESTIONS ?

You can find me at shahzeb.shaikh@gmail.com