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Types of Company

1) There are several types of companies including registered, foreign, statutory, limited by shares or guarantee, unlimited, single member, public, private, subsidiary, wholly owned subsidiary, holding, and public sector. 2) A company can be formed by three or more persons associating to form a public company, two or more persons to form a private company, or one person to form a single member company. 3) If a company carries on business for over six months with fewer than three members for a public company or two members for a private company, then remaining members will be personally liable for company debts during that time.

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Muzammil Liaquat
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405 views14 pages

Types of Company

1) There are several types of companies including registered, foreign, statutory, limited by shares or guarantee, unlimited, single member, public, private, subsidiary, wholly owned subsidiary, holding, and public sector. 2) A company can be formed by three or more persons associating to form a public company, two or more persons to form a private company, or one person to form a single member company. 3) If a company carries on business for over six months with fewer than three members for a public company or two members for a private company, then remaining members will be personally liable for company debts during that time.

Uploaded by

Muzammil Liaquat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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TITLE

Types NAME
of Companies

Qaiser Iqbal
Associate Member of Institute of Cost and Management Accounts of Pakistan

QAISER IQBAL
Single
Public Sector Member
Company CO

Foreign Company

QAISER IQBAL 2
QAISER IQBAL 3
Company/Registered Company
 means a company formed and registered under Companies Act 2017 or the
company law;
 company law means the repealed Companies Act, 1913, Companies
Ordinance, 1984 and Companies Ordinance

Foreign company
means any company or body corporate incorporated outside Pakistan, which
a) has a place of business or liaison office in Pakistan whether by itself or
through an agent, physically or through electronic mode; or
b) conducts any business activity in Pakistan in any other manner as may be
specified;

Statutory Company
 The companies which are formed under special statute are termed as
statutory companies.
 They are governed by act or ordinance through which they are created.
Examples of such types of companies are state bank of Pakistan, investment
Corporation of Pakistan etc.

QAISER IQBAL
QAISER IQBAL 5
company limited by shares
means a company; having the liability of its members limited by the
memorandum to the extent of amount, if any, remaining unpaid on the shares
respectively held by them;

Company limited by guarantee


means a company having the liability of its members limited by the
memorandum to such amount as the members may respectively thereby
undertake to contribute to the assets of the company in the event of its being
wound up;

Unlimited Company means a company not having any limit on the liability of
its
members;

QAISER IQBAL
QAISER IQBAL 7
Single Member Company
means a company which has only one member.

Public company
means a company which is not a private company.

Private company
means a company which, by its articles
a) Restricts the right to transfer its shares;
b) Limits the number of its members to fifty not including persons who
are in the employment of the company;
c) Prohibits any invitation to the public to subscribe for the shares, if
any, or debentures or redeemable capital of the company:

Listed company
means a public company, body corporate or any other entity whose
securities are listed on securities exchange;

Listed securities
means securities listed on the securities exchange;

QAISER IQBAL 8
QAISER IQBAL 9
Subsidiary company or subsidiary means a company in which the
holding company
(a) controls the composition of the board; or
(b) exercises or controls more than one-half of its voting securities either
by itself or together with one or more of its subsidiary companies.

Wholly owned subsidiary a company shall be deemed to be a wholly


owned subsidiary of another company or the statutory body if all its shares
are owned by that other company or the statutory body.

Holding company, means a company which is another company‘s


holding company if, but only if, that other company is its subsidiary;

QAISER IQBAL 10
Public sector company
means a company, whether public or private, which is directly or indirectly
controlled, beneficially owned or not less than fifty-one percent of the
voting securities or voting power of which are held by the Government or
any agency of the Government or a statutory body, or

in respect of which the Government or any agency of the Government or a


statutory body, has otherwise power to elect, nominate or appoint majority
of its directors and includes a public sector association not for profit,
licenced under section 42:

Listed company
means a public company, body corporate or any other entity whose
securities are listed on securities exchange;

Listed securities
means securities listed on the securities exchange;

QAISER IQBAL 11
Body Corporate or “Corporation" includes
a) a company incorporated under this Act or company law; or

b) a company incorporated outside Pakistan, or

c) a statutory body declared as body corporate in the relevant statute.

Company law means the repealed Companies Act, 1913 (VII of 1913),
Companies Ordinance, 1984(XLVII of 1984) and Companies Ordinance,
2016 (VI of 2016);

QAISER IQBAL 12
Mode of forming a company. Sec 14
Any
a) three or more persons associated for any lawful purpose may, by
subscribing their names to a memorandum of association and
complying with the requirements of registration, form a public
company; or

b) two or more persons so associated may in the like manner form a


private company; or

c) one person may form a single member company by complying with


the requirements in respect of registration of a private company and
such other requirement as may be specified.

Explanation
Mode of forming a company
I. Three or more persons may form a public company
II. Two or more persons may form a private company
III. One person may from a single member company.

QAISER IQBAL
Liability for carrying on business with less than
three or, in the case of a private company, two
members. Sec 15
If at any time
a) the number of members of a company is reduced,
i. in the case of a private company, below two or
ii. in the case of any other company, below three

And
b) the company carries on business for more than six months while the
number is so reduced,

Then
every person who is a member of the company during the time that it so
carries on business after those six months
i. shall be severally liable for payment of whole debts of the company
(contracted during that time) and
ii. may be sued therefor without joinder in the suit of any other
member.

QAISER IQBAL

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