VOLUNTARY WINDING UP UNDER THE SUPERVISION OF COURT

-
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...
7 comments

PARTNERSHIP

-
Partnership is the second stage in the evolution of forms of business organization.  It means an association of two or more persons to carry on a business for profit.

According to Partnership Act, 1932 

“Partnership is the relation between persons who have agreed to share the profits of a business, carried on by all or any of them active for all.”

PARTNERS 

  “The individuals who comprise a partnership are known as partners.”

KINDS OF PARTNERS

Partners can be classified into different kinds, depending upon their extent of liability,
participation in management, share of profits and other facts.

1.  Active Partner

A partner who takes active part in the affairs of business and its management is called active
partner.  He contributes his share in the capital and is liable to pay the obligations of the
firm.

2.  Secret Partner

A partner who takes active part in the affairs of the business but is unknown to the public as
a partner is called secret partner.  He is liable to the creditors of the firm.

3.  Sleeping Partner

A partner who only contributes is the capital but does not take part in the management of
the business is known as sleeping partner.  He is liable to pay the obligations of the firm.

4.  Silent Partner

A partner who does not take part in the management of business but is known to the public
as partner is called silent partner.  He is liable to the creditors of the firm.

5.  Senior Partner 

A partner who invests a large portion of capital in the business is called senior partner.  He
has a prominent position in the firm due to his experience, skill, energy, age and other facts.

6.  Sub‐Partner

A partner in a firm can make an agreement with a stranger to share the profits earned by
him from the partnership business.  A sub‐partner is not liable for any debt and can not
interfere in the business matters.

7.  Junior Partner

A person who has a small investment in the firm and has a limited experience of business is
called junior partner.

8.  Major Partner

A major partner is a person who is over 18 years of age.  A person is allowed to make
contract when he has attained the age of majority.

9.  Minor Partner

A person who is minor cannot enter into a valid contract.  However, he can become a
partner with the consent of all other partners.  A minor can share profits of a business but
not the losses.

10.  Nominal Partner

A partner who neither contributes in capital nor does he take part in the management of
the business but allows he name to be used in the business is known as nominal partner.
He is individually and jointly liable for the debts of the firm along with other partners.

11.  Deceased Partner

A partner whose life has expired is known as deceased partner.  The share of capital and
profit of such partner is paid to his legal heirs in lumpsum or in installment.

12.  Limited Partner
A partner whose liabilities are limited to his share in business is called limited partner.  He
cannot take active part in the management of the firm.

13.  Unlimited Partner

A partner whose liabilities are unlimited is known as unlimited partner.  He and his personal
property both are liable to clear the debts of the firm.

14.  Incoming Partner

A person who is newly admitted in the firm with the consent of all the partners is called
incoming partner.  He is not liable for any act of the firm performed before he became the
partner unless he agrees.

15.  Retired Partner

A partner who leaves the firm due to certain reasons is known as retired partner or
outgoing partner.  He is liable to pay all the obligations and debts of the firm incurred
before his retirement.

16.  Partner is Profits only

If a partner is entitled to receive certain share of profits and is not held liable for losses is
known as partner in profits only.  He is not allowed to take part in the management of the
business.

17.  Quasi Partner

A person, who was the par4tner of a firm but has now retired from active participation in
business and has left his capital in the business as a loan, receiving interest on it, is known
as quasi partner.

18.  Partner by Estoppel

A person who holds himself out as a partner of a firm, before a third party or allows other to do so, though he is not a partner of that firm, is called partner by estoppel or holding out partner. He is not entitled to any right like other partners of the firm. He is not entitled to any right like other partners of the firm.  He is personally liable to the third party for the credit given to the firm, on the faith of his representation.

Comments

Post a Comment

Popular posts from this blog

PROCEDURE OF FORMATION OF A JOINT STOCK COMPANY IN PAKISTAN

-
Joint Stock Company is the third major form of business organization. It has entirely different organizational structure from sole proprietorship and partnership. There are two advantages of Joint Stock Company. First of all, it enjoys the advantage of increased capital. Secondary, the company offers the protection of limited liability to the investors. The law relating to Joint Stock Company has been laid in Companies Ordinance, 1984, which came into force on January 1, 1985 in Pakistan. Following are the important stages or steps for the formation of a joint stock company: Formation of joint Stock Company PROMOTION STAGE The promoters do the basic work for the start of a commercial or an industrial business on corporate basis. Promotion is the discovery of ideas and organization of funds, property and skill, to run the business for the purpose of earning income. Following steps are involved in the stage of promotion. 1. Idea about Business Before starting the busine...
Read more

VOLUNTARY WINDING UP UNDER THE SUPERVISION OF COURT

-
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...
Read more

DIRECTOR’S MEETINGS

-
DIRECTOR’S MEETINGS The members of the company elect their representatives to run the business and management of the company.  These representatives are called the directors of the company and they are different in numbers in different companies.  All the business affairs are settled with mutual consultation of all directors.  So, the meeting called for directors to discuss the policies or to take the decisions is called directors’ meeting. 1.  When is it held? This meeting must be held at least once in three months and at least four times in a year. 2.  Notice Notice of every meeting must be sent to each directors, otherwise the proceedings of the meeting may be declared void. 3.  Objects •  To allot shares •  To invest company’s fund •  To recommend dividend •  To keep reserve out of profit •  To make loans •  To appoint officers or committee •  To discuss the contracts of the company WINDING UP OF COMPANY A c...
Read more