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Practice Kit

The document provides a comprehensive overview of various aspects of company law, including incorporation, directors' roles, investments, accounts, and winding up procedures. It also covers share capital, debentures, insider trading, public offerings, and regulations for non-banking finance companies and insurance companies. Additionally, it addresses competition law and the responsibilities of companies in relation to their operations and compliance requirements.

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mairamir97
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0% found this document useful (0 votes)
4 views

Practice Kit

The document provides a comprehensive overview of various aspects of company law, including incorporation, directors' roles, investments, accounts, and winding up procedures. It also covers share capital, debentures, insider trading, public offerings, and regulations for non-banking finance companies and insurance companies. Additionally, it addresses competition law and the responsibilities of companies in relation to their operations and compliance requirements.

Uploaded by

mairamir97
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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Practice Kit

- Introduction to Company Law and Companies


'Limited' name conditions

- Incorporation of Companies
Section 42

- Directors and Other Officers


Non-cash transactions invlolving directors
Removal of chief executive

- Investments, contracts and dividends


Associated undertaking (information to the members)
Employees' Provident Fund

- Accounts and Records


Court actions against the management

- Mediation, Arbitration, Mismanagement, Restructuring and Rehabilitation


Amalgamation
Section 291
Administrator
Section 286

- Winding Up
Declaration of solvency
Liquidator (section 337)
Preferential payments

- Other Misc. Areas


Companies established outside Pakistan

- Introduction to Share Capital


Restriction on transfer of shares (private company)
Reduction of share capital
Successor-in-interest & nominee

- Debentures
Registration of mortgages, charges
Trustee
Particulars of charge not been filed - Rectification of register of mortgages

- Further Issue of Share Capital


Aggrieved shareholders - Variation of shareholders’ rights
Companies (Further issue of shares) Regulations, 2020 - Employee stock option
scheme, undertaking, exit offer opportunity
New class of non-voting ordinary shares, board's decision info. - Conditions for
right issue (decision of board)
Return as to allotments*
Private Placement of Securities Rules, 2017 - share capital & debt securities
conditions, reporting
Sukuks - Issue of securities and redeemable capital not based on interest (section
66)

- Buy back of Shares


Eligibility conditions
Draft a special resolution (2)
Info. required to disclose in annual report - Obligations of the Purchasing co.
Steps - Procedure for Purchase
Disposal of treasury shares & procedure - Maximum holding of Treasury Shares &
Disposal of the Treasury Shares and procedure
Legality of transactions - Eligibility Requirements for the Purchase & Disposal of
the Treasury Shares and procedure
Maximum number of shares that can buy back - Section 88 & Maximum holding of
Treasury Shares
Requirements after the closing of purchase period - Obligations of the Purchasing
co.
Sale of shares - 2 - Disposal of the Treasury Shares and procedure & Condition for
issue of Employee Stock Option Scheme*
Situations in which not permittted
* Companies (Further Issue of Shares) Regulations, 2020

- Insider trading
Responsibilities (3) - Duty of directors and others to disclose shareholding in
listed co., Trading by directors and others & Tender of gain to be credited to
Federal Consolidated Fund
Ambit of insider trading (2) - Inside information & Insiders
Responsibilites of a listed co. - Listed companies’ responsibilities to disclose
inside info.
Substantial shareholder (3)
Disclosure of price sensitive info.
Consequences - Offences and penalties
Powers of the SECP - Directive by the Commission

- Initial Public Offer


Book building process
Dutch Auction Method - Strike Price & rationale
Restrictions
Eligibility for making public offer of shares & methods for determining offer price
Restrictions on sponsors - Conditions for public offer of Shares
Extension of bidding period - Restrictions
Book runner vetting - Procedure for bidding
Legality of bids, how shares would be alloted & leftover/excess
Misleading prospectus

- Rule Book of PSX


Info. to stock exchange & timing (2)
Closure of share transfer books (2)
Non Compliance Segment (3) & restoration of trading in the shares of suspended co.
Voluntary delisting - minimum % of shares acquisition & minimum purchase price (2)

- Substantial acquisition
Issues to be placed for decision of the BOD (COCG), powers of board (CA) & general
obligations of the acquirer
Upward revision of offer (SA) & conditions for upward revision of public offer
Public announcement of intention & prohibitions on BOD of the target co. (SA)
Section 111 (2), 116, 118 & 120 (2) (SA) & Number of voting shares to be acquired
Section 113, 108, 121 & 122 (SA) & Minimum offer price

- Non-Banking Finance Companies


Investment in unquoted shares - restriction and approvals for individual and
aggregate
Registration - businesses, equity & paid up share capital, blocked (5e and 5f),
changes in MoA, group of companies, chief executive & business commencement
Chief Executive removal & interim CEO appointment and requirements
Maximum number of shares purchase - 20%, 10% (lower of) & 10%
Strategic investments
Microenterprise and micro entrepreneur & subordinated loan
Classification of receivables - Classification and Provisioning for non-performing
assets
Registration - chief accounting officer, directors, executives, accounts, financial
statments, rating, strategic investment & investment in unlisted co.
Merger (2)

- Banking Companies and transactions


Prohibition of directors
Consequence of declaration by SBP - Consequences of a declaration under section 43B
Loan applications approval - Restrictions on loans and advances
Payments Systems and Electronic Fund Transfers Act (5) - Disqualification of Staff
(2), Prohibition of Issuance of Payment Instruments, Designation of Payment System
(3) & Revocation of Designation of Payment System (2)

- Insurance Companies
Minimum solvency requirements
Proposal - shareholding composition, line of business & capital requirements
Identification of form of business, mandatory requirements & maximum time period
(confirmation of registration)
Comparative advantages (NBFC) - incorporation, lincensing & restrictions

- Competition Act
Deceptive marketing practices (3)
Merger, dominant position & exemption (5)
Abuse of dominant position
Claiming exemption - individual & block
Phase - I and Phase - II review (2)
Prohibited agreement (restrict the supply) & cancellation of exemption

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