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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KINDS OF PARTNERSHIP

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There are three kinds of partnership which are described as under:

  1.  Partnership at will
  2.  Particular partnership
  3.  Limited partnership

PARTNERSHIP AT WILL

If the partnership is formed for an undefined time, it is called partnership at will.  Any partner can dissolve it at any time by giving the notice.

  According to Partnership Act, 1932:
“If no provision is made in the agreement regarding the partnership, it is called partnership at will.”

  Partnership at will may be created under the following circumstances:

1.  Indefinite Period 

If partnership has been formed for an indefinite period, it is called partnership at will.

2.  Existence after Completion of Venture

If partnership has been formed for a particular venture and after completion such venture it
remains continue, it becomes a partnership at will.

3.  Existence after Expiry of Period

If partnership has been formed for a definite time period, so after the expiry of this period,
it becomes partnership at will.

PARTICULAR PARTNERSHIP

If the partnership is formed for a particular object of temporary nature, it is called particular
partnership.  On completion of a particular venture, it comes to an end.  Under this no
regular business is done.  For example: Partnership for the construction of a building and
partnership for producing a film.

LIMITED PARTBNERSHIP

Limited partnership is that in which liabilities of some partners are limited up to the amount
of their capitals.  In this partnership, there is at least one partner who has unlimited liability.

In Pakistan, this type of partnership is not formed.  There is a separate partnership act for it.

MAIN FEATUTRES

Main features of partnership are:

1.  Limited Partner

There is at least one partner who has limited liability.

2.  Unlimited Partner

There is at least one partner who has unlimited liability.

3.  Number of Partners

There are at least two partners or maximum 20 in an ordinary business and not more than
10 in banking business.

4.  Admission of New Partner

New partners may be admitted in this partnership without the consent of limited partners
but with the consent of unlimited partners.

5.  Registration

The registration of this partnership is compulsory by law.

6.  Transferability of Shares 

Limited partner can transfer his shares to any other person with the consent of all other
partners.

7.  Inspection of Books

Limited partner has a right to inspect the books of accounts.

8.  Rights of Suggestions 

Limited partner has a right to give suggestions to others who manage the business.

9.  Participation in Management

A limited partner cannot take part in the management of the business.

10.  Withdrawal of Capital

A limited partner cannot withdraw his capital until he remains in partnership business.

11.  Separate Legislation 

It is enrolled under the Limited Partnership Act, 1907, instead of Partnership Act, 1932.

TERMINATION OF PARTNERSHIP

All forms of partnership under Islamic law may be terminated as:

1.  Notice

In all the above forms of partnership each partner has a fight to terminate the partnership
by giving notice to other partners.

2.  Death

Partnership is also terminated on the death of a partner.

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