11-26-2011, 09:34 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 bilalfca</i>
<br />Well Mr Student of Law, would u mind telling me a Public Listed Co name, which is not having or does not have more than 7 members for 2 years?
Now
Sec 146(1)c
No amount is or may become liable to be repaid to "Applicants" for any shares or ... offered for public subscription. (A public listed co has to raise Minimum subscription before commencement of business... (The directors are not trillionaire unlike u) They have to float shares to raise min. subscription so the Co will definitely have more not less than 10 members in practical sense)
Sec 158(1)
Every Co. (including a Public Listed Co) shall hold an AGM within 18 months of its incorporation........ (So a public listed co must have not less than 10 members having not less than 25% voting power to hold that AGM.)
Theoretically what u think is possible but in real sense, i'm afraid, its not...
Student of "Law" u need some additional insight of LAW..
Regards!
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
On what basis you think that minimum subscription should always be in trillion? Why it cannot be one million? Section 146 (1)(c) has nothing to do with minimum subscription. Secondly, minimum subscription amount is not achieved after getting listed rather it has to achieved before. Unless, minimum subscription amount is achieved , company cannot offer shares to public. Read s.68(1)
You reliance upon s.146 that deals with issuance of commencement of business certificate, is irrelevant. If you look at Rule 6 (iv) of the Listing Regulations of Karachi Stock Exchange, you will find that a company applying for listing is required to furnish Commencement of Business Certificate along with the other documents. So commencement business certificate stage is already over before applying for listing. (There may be a few exceptions but general rule is before you) Section 146 is irrelevant.
To clear your concept, minimum subscription is raised before getting listed . [s.68(1)]
Commencement of business certificate is obtained before getting listed. [ Rule 6 of KSE Listing Regulations]
You are acting under misconception, that a listed company is a listed company since its incorporation. Every company is incorporated by SECP. Then it may get listed with stock exchange at any time; either within 6 months of incorporation or after 60 years of incorporation.
Further, misconception of yours is that listed company should always have a capital of a trillion rupees. Where you have found written that a company with 1 million rupees paid up capital can't go into listing?
The appreciable point that original author (Tahmans) of this post raised was several inconsistencies in company law, some of them have been caused by reckless amendments. It is an inconsistency that at one place law requiring public limited company, listed and unlisted, to have three members requirement. At another place it is saying ten members would formulate quorum. This is example of bad draftsmanship that will remain so no matter how aggressively, illogically, and by quoting irrelevant provisions of law, you try to defend it.
On one point I agree with you. i.e. your recommendation that "I need some additional insight of law." Yes of course , I fully agree with you , I am a student of law and I need to add to my study of law and insight of law till my last breath for my improvement. Thanks for your advice.
<br />Well Mr Student of Law, would u mind telling me a Public Listed Co name, which is not having or does not have more than 7 members for 2 years?
Now
Sec 146(1)c
No amount is or may become liable to be repaid to "Applicants" for any shares or ... offered for public subscription. (A public listed co has to raise Minimum subscription before commencement of business... (The directors are not trillionaire unlike u) They have to float shares to raise min. subscription so the Co will definitely have more not less than 10 members in practical sense)
Sec 158(1)
Every Co. (including a Public Listed Co) shall hold an AGM within 18 months of its incorporation........ (So a public listed co must have not less than 10 members having not less than 25% voting power to hold that AGM.)
Theoretically what u think is possible but in real sense, i'm afraid, its not...
Student of "Law" u need some additional insight of LAW..
Regards!
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
On what basis you think that minimum subscription should always be in trillion? Why it cannot be one million? Section 146 (1)(c) has nothing to do with minimum subscription. Secondly, minimum subscription amount is not achieved after getting listed rather it has to achieved before. Unless, minimum subscription amount is achieved , company cannot offer shares to public. Read s.68(1)
You reliance upon s.146 that deals with issuance of commencement of business certificate, is irrelevant. If you look at Rule 6 (iv) of the Listing Regulations of Karachi Stock Exchange, you will find that a company applying for listing is required to furnish Commencement of Business Certificate along with the other documents. So commencement business certificate stage is already over before applying for listing. (There may be a few exceptions but general rule is before you) Section 146 is irrelevant.
To clear your concept, minimum subscription is raised before getting listed . [s.68(1)]
Commencement of business certificate is obtained before getting listed. [ Rule 6 of KSE Listing Regulations]
You are acting under misconception, that a listed company is a listed company since its incorporation. Every company is incorporated by SECP. Then it may get listed with stock exchange at any time; either within 6 months of incorporation or after 60 years of incorporation.
Further, misconception of yours is that listed company should always have a capital of a trillion rupees. Where you have found written that a company with 1 million rupees paid up capital can't go into listing?
The appreciable point that original author (Tahmans) of this post raised was several inconsistencies in company law, some of them have been caused by reckless amendments. It is an inconsistency that at one place law requiring public limited company, listed and unlisted, to have three members requirement. At another place it is saying ten members would formulate quorum. This is example of bad draftsmanship that will remain so no matter how aggressively, illogically, and by quoting irrelevant provisions of law, you try to defend it.
On one point I agree with you. i.e. your recommendation that "I need some additional insight of law." Yes of course , I fully agree with you , I am a student of law and I need to add to my study of law and insight of law till my last breath for my improvement. Thanks for your advice.
