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 SOLE PROPRIETORSHIP

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Following are the advantages of sole proprietorship:

1.  Contacted with the Customers 

In sole proprietorship a businessman has direct contact with the customer and keeps in mind the like and dislikes of the public while producing his products.

2.  Direct Relationship with Workers

In sole proprietorship a businessman has direct relationship with workers.  He can better understand their problems and then tries to solve them.

3.  Easy Formation 

Its formation is very easy because there are not legal restrictions required like registration
etc.

4.  Easy Dissolution

Its dissolution is very simple because there are no legal restrictions required for its dissolution and it can be dissolved at any time.

5.   Easy Transfer of Ownership

A sole proprietorship can easily be transferred to other persons because of no legal
restriction involved.

6.  Entire Profit

Sole proprietorship is the only form of business organization where the owner enjoys 100%
profit.

7.  Entire Control

In sole proprietorship the entire control of the business is in the hands of one person.  He
can do whatever he likes.

8.  Flexibility

There is great flexibility in sole proprietorship.  Business policies can easily be changed
according to the market conditions and demand of people.

9.  Honesty

The sole master of the business performs his functions honesty and effitively to make the
business successful.

10.  Independence

It is an independent form of business organization and there is no interference of any other
person.

11.  Personal Satisfaction

As all the Business activities are accomplished under the supervision of sole owner, so he
feels personal satisfaction that the business is running smoothly.

12.  Prime Credit Standing

A sole proprietor can borrow money more easily because of unlimited liability.

13.  Quick Decisions

Sole proprietor can make quick decisions for the development and welfare of his business
and in this way can save his time.

14.   Personal Interest

A sole proprietor5 takes keen intere4st in the affairs of business because he alone is
responsible for profit and loss.

15.  Saving in Interest on Borrowed Capital 

Sometimes, a sole proprietor borrows money to increase his capital, from his relatives,
without interest.

16.  Saving in Legal Expenses 

As there are no legal restrictions for the formation of sole proprietorship so it helps in
increasing savings as legal expenses are reduced.

17.  Saving in Management Expenses

The owner of the business himself performs most of the functions so it r educes the
management expenses.

18.  Saving in Taxes

The tax rates are very low on sole proprietorship because it is imposed on the income of
single person.

19.  Secrecy

It is an important factor for the development of business.  A sole trader can easily maintain the secrecy about the techniques of production and profit.

20.  Social Benefits

It is helpful in solving many social problems like unemployment etc.

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