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Company Law -3 Lecture # 27

Public & Private Companies Number of Members –Private Company –Limited Company7 - Unlimited Sale of Shares –After approval by SECP

Public & Private Companies Commencement of Business –Immediately –After Approval by SECP Allotment of Shares –The allotment of shares is the issuing of new shares to the existing shareholders or to third parties. The Directors of a Company may allotshares in the capital of the Company, if they have the authority to do so.

Public & Private Companies Statutory Meeting –No Need for Private Co –Legal Binding for Public Co Issuance of Prospectus –A document containing detailed information about the company and an invitation to the public subscribing to the share capital and debentures is issued.

Public & Private Companies Framing Articles –All limited companies must have articles of association. These set the rules company officers must follow when running their companies. –When a company limited by shares was incorporated, it didn’t need to file articles if it used ‘Table A’ as its articles.

Public & Private Companies Framing Articles –All limited companies must have articles of association. These set the rules company officers must follow when running their companies. –When a company limited by shares was incorporated, it didn’t need to file articles if it used ‘Table A’ as its articles.

Public & Private Companies Transfer of Shares –Transfer of shares is a transfer of ownership of shares - such as a purchase/ sale or gift. The shares were owned by one person before the transfer and a different person after the transfer. Registration of shares is generally a process in which Company’s authority grants some designation to certain shares

Public & Private Companies Number of Directors –Private Co –Company Borrowing –To take or obtain with the promise to return –Private Co. financial position may be weaker then Public Co.

Public & Private Companies Submitting of Accounts –Must with Co. –Using Table A Use of word “Limited” –Limited or Ltd –ABC (Pvt) Ltd –XYZ Ltd

Public & Private Companies Signature to Memorandum –By all Directors/ Underwriters First Directors –Pvt Co –Co

Public & Private Companies Loan to Directors –Pvt Co.Without Hassle –Co.Approval Rights of Directors –Pvt. vote –Public cannot vote

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