Introduction

Company:

Company is legally entity apart from its members, capable of rights and duties of its own, and endowed with the potential of perpetual succession. It is an ‘intricate, centralized, economic, administrative structure run by Professional managers who hire capital from the investors”. According to section 2(7) of the Companies Ordinance, 1984 “company” means a company formed and registered this Ordinance or an existing company.

Element of Companies:

  • Limited Liability: Liability of Shareholder cannot go beyond his/her share in the company unlike in firm where personal assets can also be attached in case of unpaid liabilities.
  • Perpetual Existence: Life of a Company is unlimited and it remains in existence independent of its directors or members.
  • Governing Law: Companies Ordinance, 1984
  • Governing Body: Securities and Exchange Commission of Pakistan