Assignment 1

Corporate Governance and Reporting

A corporation is a legal entity established by law.

The law treats companies themselves as plaintiffs and litigants.
Shares are transferable, so the company survives the death of the investor.

Mortgages are on Fixed Assets whereas pledges are on Current Assets.

There are few exceptions in the company where the has more than 20 members but does not
wish to form a limited liability company. If the company or legal entity is incorporated under
any other law of Pakistan. It's a family run joint venture. A partnership in which each family
has his 20 members and eventually all professional companies participate.

SECP is responsible for regulating the corporate sector. It also supervises and regulates
insurance companies and non-bank financial companies. It also work with a number of
external service providers, such as credit rating agencies and auditing firms.

The Commission has the right and authority to review and demand all company information
and documents and authorize changes to the MOA. It makes sure the company name is
appropriate.It issues licences to non-profit organisations. It also gives approval for changes to
partnerships of corporations. The Board approves the prospectus and authorises the issuance
of the securities. It sets the minimum and maximum number of shares. The Board has the
power to authorise the issuance of shares at discounted prices. In addition, the extension of
the general meeting is also permitted by the commission.

The MoA is a charter and defines the limits of its powers.

It must be printed, broken into paragraphs and signed by each subscriber. The
Aoa is amendable by special resolution and regulates intercompany rights.

Pakistan's corporate sector includes his

Statutory Companies (Ltd.) such as Insurance.
Incorporated company
Foreign company
Specialised company (with a single purpose), e.g KE

Three types of Ultra Vires are:

The Memorandum
The Articles
The Directors

A special resolution of the shareholders' meeting is required to change the name clause. Next,
you will need to amend the deed of incorporation you received with approval from your
registrar. Up to one year after the change, the old name must be written with the new name.
Apply to SECP for name availability. If SECP approves your name, you will need to open a
bank account, print stationery, articles of incorporation, and charter.MoA and AoA must be
signed by original members. Submit the registration application to the registrar.If everything
is approved, you will receive a Certificate of Origin. A private company can start a business,
but a public company cannot do so unless it issues a prospectus and calls for the public to
invest in its capital. It also requires stock exchange approval.

Promoters are people who do all the preparatory work before starting a company. You come
up with the idea of starting a company.

There are many types of directors.First director,elected director, appointed director, nominee
director,assignee director,alternate director and whole time employee director.

The number of elected Directors cannot be changed once determined by the Directors at a
General Assembly at least 35 days prior to election.
Invitations must be sent to a member at least 21 days before her meeting.
Candidate must be notified 14 days before his election. This person may resign at any time
before the election. If the number of candidates is less than the number of directors to be
elected, they shall not be elected.
Also, if the number of candidates is greater than the number of directors elected, the votes
available to members will be the product of the number of votin

Directors have the power to pay expenses on behalf of the company. The board is obliged to
issue shares, borrow money to approve company directors, approve bonuses to employees,
enter into lease agreements, and declare interim dividends.