CORPORATE & BUSINESS LAW

SUBMITED TO
SIR Ali Sajjad
Submitted By
Faryal bibi BBHM-F19-195
Javeria Maham Bbhm-f19-235

M.Zeeshan Bbhm-f19-204

NOVEMBER 1, 2021
 Business name

Floral Event Organizers

Business:

Any legal activity undertaken or performed for the purpose of earning

profit is known as business.

For example: Apple and Walmart etc.

Types of business:

Types of business are given below:

1. According to Operation
• Manufacturing
• Trading
• Services
2. According to Organization
• Sole Proprietorship
• Partnership
• Company

Partnership:
 A partnership is an agreement in which two or more people who
combine their resources to form a business and agree to share risks,
profits and losses.

Law of partnership:

The law of partnership is containing in the partnership Act,1932

which came into force on 1st October 1932. it extends to whole of
Pakistan.

Characteristics of Partnership:

• Contractual Relationship
• Two or More Persons
• Existence of Business
• Earning and Sharing of Profit
• Extent of Liability
• Mutual Agency
• Implied Authority
• Legal entity
• Transfer of partners

Advantages of partnership:

• Easy formation
• Larger capital
• Better management
• High credit standard
• Flexibility
• Decision making
• Protection of minor partner
• Quick decision
• Sharing of risk
 • Possibility of expansion
• Business expert
• Spirit of cooperation
• Personal supervision
• Easy dissolution

Disadvantages of partnership

• Unlimited liability
• Risk of dissolution
• Possibility of disagreement
• Limited resources
• No transfer of ownership
• Lack of public confidence

Ideal partnership

Ideal partnership consists of the following terms:

• Mutual understanding
• Common purpose
• Good faith
• Sufficient capital
• Long duration
• Number of partners
• Written agreement
• Registration

Purpose of Partnership

The purpose of partnership agreement (or partnership contract) is to establish a

business enterprise through a legally binding contract between two or more
individuals or other legal entities.

Partnership deed:

The partnership agreement in written is called partnership deed. It is better to

have a written agreement. It contains following terms:

i. The name of the firm

ii. The name and address of all partners
 iii. The nature of business of the firm
iv. The town and the place where the business is carried on
v. The amount of capital invested by each partner
vi. The duration of partnership
vii. The ratio of sharing profit and losses
viii. The rate of interest if any allowed-on capital
ix. The rate of interest on advance given by partner
x. The rate of interest to be charged on drawings.
xi. The amount a partner can withdraw from the firm
xii. The amount of salary or commission payable to any partner for his services
xiii. The circumstances under which a firm shall dissolve
xiv. The rights, duties and liabilities of partners
xv. The method of valuation of goodwill
xvi. The period of accounting year
xvii. The rules regarding retirement, death and admission of a partner
xviii. The methods of solving dispute among the partners and appointment of
arbitrator.
xix. Power of a partner to retire after giving notice.
xx. The rules to determine amount due to deceased partner and manner of
payment.
xxi. The rules of expulsion of partner from firm
xxii. The keeping of proper books of accounts and preparation of accounts
xxiii. The restriction of partners if any.

JUSTIFICATION:
We are doing a services business the name of wham bam event
planning. We are the event planner with better qualities and
skills
{ Floral Events Organisers is Limited Liability partnership(LLP) }

i. Firm name

Wham bam event planner

ii. Partners address

Faryal bibi: Ali town,street 5,house 78,near thokr lahore

Javeria : Rivind city h # 5

Zeeshan: H # 8, Jahenzaib block lahore

iii. Nature of firm

Event planner
iv. Town and place where business exist:

Thokhar near Ali town,Lahore

v. Amount of capital of each partner

12 lac investment

Faryal: 4lac

Javeria: 4lac

Zeeshan: 4lac

vi. Duration of partnership:

2 to 3 years till partner expire

vii. Profile and loss share ratio

The profile and loss will be same because we invested the same amount

viii. The rate of interest, if any, allowed on capital

If partner take capital from firm then the interest will be 10%

ix. The rate of interest , on advance given by partner.

The rate of interest will b given 5% if partner take loan from others or banks and friends.
Partner pay the same charge amount by bank

x. The rate of interest charged by drawing:

The rate of interest charged by drawing means if partner take any thing amount,things
etc it will be charged and the amount will be 2 lac with the interest rate of Profit 10% same the
bank loan interest.

xi. The amount a partner can withdraw from firm.

If any partner withdraw from firm. He can withdraw the same amount with he
investment 20 lac but if he able to payback this amount.

xii. The amount of salary or commission payable to any partner for his services

The salary will be the same because everything partner give the same time and work to
firm but if any partner give over time and work for the firm then his commission will be 10%
with his salary.
xiii. The circumstances under which a firm shall dissolve
If partner play any fraud or use firm name in illegal activities then he/she will be out of
firm

xiv. The right , duties and liabilities of partner

Faryal bibi
 Rights; Profit and loss will be same as other partners givens.
Duty: She will conduct all the activities of order taking and manage all the arrangements and
time
Liabilities: Make unique ideas for customer satisfaction and applied different strategies for
the firm
Javeria:
Rights: profit and loss will be the same as other partners givens.
Duty: she will manage all the event planning and manage all the time, problem under the
circumstances and make a best planning for every events
Liabilities: she is able to conduct and manage all the problem in event and use the better
solution for the customer satisfaction.
Zeeshan:
Rights; Profit and loss will be same as other partners givens.
Duty: He will conduct all the activities of order taking and manage all the arrangements and
time
Liabilities: Make unique ideas for customer satisfaction and applied different strategies for
the firm
xv. The method of valuation of goodwill.

Average Profits Method

Capitalized Average profits = Average Profits x
(100/average return rate)

Super Profits Method

Goodwill = Super Profits x (100/ Normal Rate of Return)

xvi. The period of accounting year

January to December (1 to 12) or depends on events

xvii. The rules regarding retirement, death and admissions of partner Retirement;
• With the consent of all the other partners,
• In accordance with an express agreement among the partners Death:
• Distribution of accumulated profits, reserves and losses
• Revaluation of assets and liabilities
• Determination of new profit sharing ratio and gaining ratio
• Adjustment for goodwill
• Adjustment for current year’s profit or loss upto the date of death
• Settlement of the amount due to the deceased partner
• Calculation of new profit sharing ratio
• Revolution of assets and liabilities and their accounting effect to be passed thereon

• Treatment of Reserves and accumulated profits and losses.

• Treatment of Goodwill
 • Adjustments of capital on the basis of new profit sharing ratio.
xviii. Methods of solving disputes among the partners and appointment of arbitrator.
• Lawsuits (litigation)(judicial)
• Arbitration
• Collaborative law Mediation
• Conciliation
• Negotiation
• Facilitation
• Avoidance
xix. Power of partner to retire after giving notice:

When the partner is not able to do work and give the notification of retirement then she will
able give the notice of his retirement in partnership

xx. The rules to determine amount due to deceased partner and manner of payment

In case of death of a partner, the amount that is due to him is paid to his Legal Representative.
The treatment of various items is similar to that at the time of retirement of the partner. Usually, the
legal representative is also paid the profits till the death of the partner unless there is an agreement to
the contrary among the partners.

• Deceased partner’s share of Goodwill of the firm.

• Deceased partner’s share in the reserves or the undistributed profits,
if any.
• The deceased partner’s share of the Joint Life Policy amount received
on his death.
• The share of the deceased partner in Profit on Revaluation of assets
and liabilities.

Deduction before the final payment

• Drawings by the deceased partner
• Interest on Drawings
• The share of the deceased partner in Loss on Revaluation of assets and
liabilities.
• Deceased partner’s share of loss up to the date of his death.
xxi. The rule expulsion of partner from firm.
• The power of expulsion must be stated in a contract between the partners.
• A majority of the partners must exercise the power.
• It has to be exercised in good faith.
• The expulsion must be in the best interest of the partnership.
 • The partner that is to be expelled must be served with a notice.
• The partner has to be given the opportunity of being heard.
xxii. The keeping of proper books of accounts and preparations of accounts.

• Pay Close Attention to Receivables

• Keep a Pulse on Your Cash Flow
• Log Expense Receipts
• Record Cash Expenses
• Know the Difference Between Invoices and Receipts
• Keep Personal vs. Business Accounts Distinct
• Hire a Professional to Handle Your Taxes
• Maintain Clear Communication with Your Accountant
• Chart Your Accounts
• Prepare Financial Statements
xxiii. The restriction of partners, if any.

• Submit a dispute relating to the business of a firm to arbitration

• Open a bank account in his own name
• Compromise or relinquish any claim of the firm
• Withdraw a suit or proceeding on behalf of the firm
• Admit any liability in a suit or proceeding against the firm
• Acquire immovable property on behalf of the firm
• Transfer immovable property belonging to the firm,