VOLUNTARY WINDING UP UNDER THE SUPERVISION OF COURT

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According to section 396 of Companies Ordinance, a voluntary winding up of a company can also be carried under the strict registration of the court. 1.  Resolution At first, company has to pass special resolution for the voluntary winding up of the company. 2.  Supervision Order Following are the common grounds on which the court issues the supervision order: 1.  The liquidator performs his duty in partial manner. 2.  The winding up resolution is obtained by fraud. 3.  The liquidator does not strictly observe the rules of winding up the company 3.  Power of the Court The court has the power to appoint an additional liquidator, or to remove any liquidator. 4.  Dissolution After the supervision order is made, the liquidator may exercise his powers in winding up of a company.  On completion of winding up, the court will make an order that the company is dissolved. Share Capital; In simple words, the term “capital” means the particular amoun...
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ADVANTAGES OF PARTNERSHIP

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Following are the advantages of partnership:

1.  Simplicity in Formation 

This type of business of organization can be formed easily without any complex legal
formalities.  Two or more persons can start the business at any time.  Its registration is also
very easy.

2.  Simplicity in Dissolution 

Partnership Business can be dissolved at any time because of no legal restrictions.  Its
dissolution is easy as compared to Joint Stock Company.

3.  Sufficient Capital 

Partnership can collect more capital in the business by the joint efforts of the partners as
compared to sole proprietorship.

4.  Skilled Workers

As there is sufficient capital so a firm is in a better position to hire the services of qualified
and skilled workers.

5.  Sense of Responsibility 

As there is unlimited liability in case of partnership, so every partner performs his duty
honestly.

6.  Satisfaction of Partners

In this type of business organization each partner is satisfied with the business because he
can take part in the management of the business.

7.  Secrecy

In partnership it is not compulsory to publish the accounts.  So, the business secrecy
remains within partners.  This factor is very helpful for successful operation of the business.

8.  Social Benefit

Two or more partners with their resources can build a strong business.  This factor is very
helpful in solving social problems like unemployment.

9.  Expansion of Business

In this type of business organization, it is very easy to expand business volume by admitting
new partners and can borrow money easily.

10.  Flexibility

It is flexible business and partners can change their business policies with the mutual
consultation at any time.

11.  Tax Facility

Every partner pays tax individually.  So, a firm is in a better position as compared to Joint
Stock Company.

12.  Public Factor

Public shows more confidence in partnership as compared to sole proprietorship.  If a firm is
registered, people feel no risk in creating relations with such business.

13.  Prime Credit Standing

The liabilities of partners are unlimited, so the banks and other financial institutions provide
them credit easily.

14.  Minority Protection

In partnership all policy matters are decided with consent of each partner.  This gives
protection to minority partners.

15.  Moral Promotion

Partnership is the best business for small investors.  It promotes moral courage of partners.

16.  Distribution of Work

There is distribution of work among the partners according to their ability and experience.
This increases the efficiency of a firm.

17.  Combined Abilities

Every partner possesses different ability, which helps in running the business effectively,
when combined together.

18.  Absence of Fraud

In partnership each partner can look after the business activities.  He can check the
accounts.  So, there is no risk of fraud.

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