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Objectives of Companies Ordinance 1984


Objectives of Companies Ordinance 1984:
  • Consolidate and amend the law relating to companies
  • Healthy growth of corporate sector
  • Setting minimum standards of integrity and management
  • Prevention of malpractices
  • Promotion of investment
  • Protection of interests of shareholders
  • Full and fair disclosure of information / documents i.e. balance sheet, income statement.
  • Empowering government to intervene and investigate
Advantages of incorporation / Company:
Company is a separate legal entity
Artificial person
Perpetual succession, its activities remain continue
Company has legal capacity to sue and can be sued in its own name
Liability of members is limited
Shares are freely transferable
Formation of Companies
Phases in formation of a company
  • Promotion phase
  • Registration phase
  • Commencement of business
Promotion Phase: all spade work, documentation and different formalities from the very beginning till the formation of company are undertaken by the persons who are called the promoters. This phase is called the promotion phase.
Registration Phase: Registration process passes through the following steps.
To seek approval of the name of the company proposed by the promoters.
Preparation of required documents to be submitted for registration
Payment of stamp duty and other fees
Filing of application for registration of the Company
Important documents for Public Companies are:
  1. Memorandum of Association,
  2. Article of Association, endorsement on Memorandum regarding adoption of Table
  3. A, Statutory declaration, original copies of challan i.e. payment of different fees.
  4. A list of persons who have given consent to be directors of the company. This is to be submitted within seven days after the issuance of certificate of incorporation.
  5. The address of the registered office where it is situated to be notified within 28 days of the date of incorporation.
  6. Documents filed after issuance of incorporation certificate are: The prospectus on the date of its publication or before publication.

Documents required for Private Companies are:
  1. Memorandum of Association
  2. Articles of association
  3. Statutory declaration
  4. Notice of registered office

Effects thereof (Sec. 32)
  1. After registration the company becomes a separate legal entity, having perpetual succession and a common seal.
  2. Subscribers form a body corporate.
  3. All rights vested in body corporate to exercise all the functions of an incorporated company.
  4. Body corporate acquires perpetual succession.
  5. Body corporate possesses a common seal.
  6. Body corporate acquires the status of a separate and distinct legal person.
  7. Certificate of Incorporation includes
  8. Date of issue, Name of the company, certification by the registrar that company is incorporated.

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