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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DIRECTOR’S MEETINGS

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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 company is created by law and when the legal existence of company abolishes or comes to an end it is called winding up of a company or liquidation of company.

COMPULSORY WINDING UP BY COURT

According to Section 305 of Companies Ordinance, a company may be wound up by court under the following circumstances:

1.  Special Resolution

If a special resolution has been passed by the company for winding up.

2.  Statutory Meeting

If the company fails to submit statutory report to the Registrar for failure to hold statutory meeting within specified time.

3.  Commencement of Business 

If a company fails to start its business within one year from the date of incorporation or postpones its business for one year.

4.  Reduction in Members

If the number of members fall below seven in case of public company and below two in case of private company.

5.  Satisfaction of Court

If the court is not satisfied with the working, management and business affairs of the company

6.  Payment of Loans

If a company is unable to pay its debts.

7.  Unlisted

If a company declares itself unlisted due to any reason.

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