02-21-2009, 06:52 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Sh.Mohsin</i>
<br />Dear All;
If a company does not register itself as per Companies Ordinance 1984 but it writes at the end of its name Limited or (G) Limited, then as per C.O. 1984 a fine of Rs. 200,000 will be imposed on that company. I personally know about a company which writes at the end of its name "Limited" but no record of this company is available at SECP site and registrar office.
No penalty has been imposed on this company till now for this misconduct. Moreover this company is in existence before the Ordinance of 1984.
What are the provisions regarding this matter in C.O. 1984?
Status of this company as per NTN is AOP but this company has members much more than 20.
Please tell me whether this company is required to be registered and whether this company will be required to pay fine of Rs. 200,000.
Thanks
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Mohsin,
According to section 14 of CO,1984 no partnership can be formed with more than 20 members but under sub section 3 of section 14 of companies ordinance expresses the non applicability of sec 14 to some business organization.
Nothing in this section shall apply toâ
(a)
any society, body or association, other than a partnership, formed or
incorporated under any other Pakistan law; or
(b)
a joint family carrying on joint family business; or
(c)
a partnership of two or more joint families where the total number of
members of such families, excluding the minor members, does not exceed
twenty; or
[(d)
a partnership formed to carry on practice as lawyers, accountants or any
other profession where practice as a limited liability company is not
permitted under the relevant laws or regulations for such practice.]
However no business or firm or joint family can add words limited, private limited or guarantee limited with its name. If any busines,not registered as company under companies ordinance,do so then fine of Rs. 20,000/- shall be imposed.
Regards,
Awais
<br />Dear All;
If a company does not register itself as per Companies Ordinance 1984 but it writes at the end of its name Limited or (G) Limited, then as per C.O. 1984 a fine of Rs. 200,000 will be imposed on that company. I personally know about a company which writes at the end of its name "Limited" but no record of this company is available at SECP site and registrar office.
No penalty has been imposed on this company till now for this misconduct. Moreover this company is in existence before the Ordinance of 1984.
What are the provisions regarding this matter in C.O. 1984?
Status of this company as per NTN is AOP but this company has members much more than 20.
Please tell me whether this company is required to be registered and whether this company will be required to pay fine of Rs. 200,000.
Thanks
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Mohsin,
According to section 14 of CO,1984 no partnership can be formed with more than 20 members but under sub section 3 of section 14 of companies ordinance expresses the non applicability of sec 14 to some business organization.
Nothing in this section shall apply toâ
(a)
any society, body or association, other than a partnership, formed or
incorporated under any other Pakistan law; or
(b)
a joint family carrying on joint family business; or
(c)
a partnership of two or more joint families where the total number of
members of such families, excluding the minor members, does not exceed
twenty; or
[(d)
a partnership formed to carry on practice as lawyers, accountants or any
other profession where practice as a limited liability company is not
permitted under the relevant laws or regulations for such practice.]
However no business or firm or joint family can add words limited, private limited or guarantee limited with its name. If any busines,not registered as company under companies ordinance,do so then fine of Rs. 20,000/- shall be imposed.
Regards,
Awais
