Company law is the legislation under which the formation or incorporation, registration, governance and dissolution of an entity is administered and controlled. Company is a legal entity formed by a group of individuals for the purpose of operating a business or undertaking, which has a legal and corporate personality separate from that of its members.
Company law has been reformed with the objective of facilitating corporatisation by way of promotion and development of corporate sector, encouraging the use of technology by electronic means in conducting business and regulation thereof. Regulation of companies for protecting interests of shareholders, creditors, stakeholders and general public, inculcating the principles of corporate governance, safeguarding minority interests in companies, providing an alternate mechanism for expeditious resolution of company disputes, and matters arising out of or connected therewith.
Utmankhel Law Associates has a strong and broadly based international company law practice. We have a team of lawyers who specialise in companies incorporation and related work. The company law team has a particular focus on the way in which corporate services are brought to commercial market and promoted and has considerable expertise in the fields of company promotions and sponsorship.
The Corporate Law Authority (CLA) was regulatory authority of corporate sector in Pakistan. A restructuring plan was initiated under the Capital Market Development of Asian Development Bank in 1997. In December 1997, the Parliament of the country promulgated Securities & Exchange Commission of Pakistan (SECP) Act, 1997. In pursuance of this Act, SECP became operational with effect from January 1, 1999. SECP as an apex regulator of corporate sector and capital market, actively pursuing its mandate for developing a progressive corporate sector, decided to replace the Ordinance with new corporate laws that meet the demand of the present complex corporate structuring.
Eventually, the journey to frame a new company law was commenced from December 2015 when the first draft on Companies Bill was issued for stakeholders comments, and it was promulgated on November 11, 2016 as Companies Ordinance, 2016 and eventually the Companies Act, 2017 was promulgated on May 30, 2017.
A company may be formed by charter, by special Act of Parliament or by registration under the Company Act. The liability of members is usually (but not always) limited by the charter, Act of Parliament or memorandum of association. A company may be a public limited company, in which event its shares may be transferred freely among, and owned by, members of the public. All limited liability companies that are not public limited companies are private companies, denoted by the term (Pvt) Ltd. While companies are owned by their members (i.e. shareholders), they are managed by a board of directors. A company may be limited by shares, or by guarantee or an unlimited company.