Professional Documents
Culture Documents
Company
Company
• Maximum Members
– Unlimited members
– Upto 50
• Sale of Shares
– Can invite general public of
– Cannot invite general public for
purchase of shares
purchase of shares
• Commencement of Business
– After fulfilling conditions relating
– After certification of incorporation minimum subscription and
qualification shares
• Statutory Meeting
– Not a requirement – Required to hold meeting and
submit report
Private and Public Company: Differences
Private Company Public Company
• Issue of Prospectus
– Cannot issue
– Cannot issue
• Transfer of Shares
– No restriction of transfer of shares
– Some restrictions
• No of Directors
– Atleast 2 – Minimum 7 directors
• Filing of Returns
– Not required if capital less than
– Filling annual returns is a
1 million
compulsory requirement
• Word ‘Limited’
– ‘Private Limited’
– ‘Limited’
Private and Public Company: Differences
Private Company Public Company
• Qualification Shares
– Directors are required to purchase
– Directors are not required to
qualification shares
purchase qualification shares
• Interested Directors
– Directors interested in any – Cannot vote in board meetings
contract can vote in board
meeting – Minimum 7 directors
• Audit
– Not a requirement having
capital less than 3 million
– Audit is a compulsory
requirement
Formation of Company
Formation of Company
• Formation of company consists of:
– Promotion
– Incorporation
– Commencement of business
Prompter
• Promoter means a person who:
• is names as subscriber in memorandum
• has been named as promoter in prospectus
• has control over company affairs as
shareholder or director
• on whose advice, the board of directors acts
Functions of a Promoter
• Business idea (which is profitable)
• Preliminary contracts (on behalf of company yet to
be formed)
• Determines name and place for the company
• Selects first directors and members
• Arrangements to prepare memorandum, articles
and prospectus
• Appoints brokers, legal advisors and auditors
• Assembles resources for starting business
• Applies for the registration of the company
Rights and Duties of Promoter
Rights Duties
• Preliminary expenses • No secret profits from
• Claim remuneration for preliminary contracts
services • Disclosure of facts
Incorporation of Company
• Manual Method
• Online Method
Manual Method of Company Registration
• Prior Approval
Banking company Ministry of Finance
State Bank of Pakistan
Non-banking finance company SECP