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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ANNUAL GENERAL MEETING

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ANNUAL GENERAL MEETING
According to section 158 of Companies Ordinance, every company must hold an annual general meeting of its shareholders, once in a year.  The meeting provides an opportunity to evaluate and measure the efficiency of the directors and other officers in carrying out the company’s affairs.

1.  Notice

A notice of annual general meeting should be sent to the shareholders, at least 21 days before the date of the meeting.

2.  Place of Meeting

In case of listed company, annual general meeting should be held in town where the registered office of the company is situated.

3.  Role of shareholders

The shareholders can criticize the policies of the directors and other officers and can offer suggestions for their improvement.

4.  Occasion

The first meting of this nature must be held within 18 months from the date of incorporation.  The gap between two annual general meetings must not be more than 15 months.

5.  Objects

The main objective of this meeting is to check that ordinary business is being done according to the rules laid down in articles of association of the company.  The directors submit their report about the affairs of the company during the proceeding year.  This report is known as director’s report.  Other objectives are: 

•  Election of Directors
•  Appointment of auditors
•  Declaration of dividend
•  Fixation of director’s, auditor’s and managing agent’s remuneration
•  Auditor’s report and balance sheet are presented in the meeting
 
6.  Winding up

According to section 305(b), a company may be wound up by the court if it does not hold the two consecutive annual general meetings.

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