COURTS, SECP AND REGISTRAR

GHULAM MURTAZA KORAI IoBM

COURTS

Jurisdiction of Courts (Section 7) The court having jurisdiction under the Companies Ordinance,
1984 shall be the HIGH COURT which has the jurisdiction in the place at which the registered
office of the company is situated.

However , the Federal Government may empower any CIVIL COURT to exercise all or any of the
jurisdictions by the Ordinance conferred upon the HIGH COURT subject to such restrictions and
conditions as it thinks fit.

COURTS

Constitution of Company Benches: In each HIGH COURT, there shall be one or more Benches
(known as Company Benches), constituted under section-7.

Procedure of the Court: All matters coming before the Court under Companies Ordinance, 1984
shall be disposed of, and the judgment pronounced, as expeditiously as possible. The disposal or
judgment of such matter shall be made within 90 days from the date of presentation of the
petition or application to the Court. The Court shall hear the cases from day to day except in
extraordinary circumstances and on grounds to be recorded.

COURTS

The Hearing of the Matters Shall not be Adjourned Except:

a) For sufficient cause to be recorded; or

b) For more than 14 days at any one time or for more than 30 days in all.

COURTS

Appeal Against Court Orders:

1. an appeal against the decision of High Court can be made to the Supreme Court against winding
up order where the paid up capital of the company is Rs. 1 million or more.
2. If the share capital less than 1 million then the appeal can be filed only if the Supreme Court
grants leave to appeal.
3. Appeal by the Supreme Court shall be decided within 90 days.

SECP

POWERS AND FUNCTIONS: The commission shall exercise and perform such powers and
functions as are conferred on it by or under:

I.

The companies Ordinance, 1984; or

II.

Any other law.

The Federal Government may, by notification in the Official Gazette, direct that all or any of the powers
and functions shall be exercised by the Commission.

SECP

The Powers & Functions of SECP under the Ordinance:

I.

To call for any information, document etc. for purposes of any proceedings or inquiry.

II.

To allow alteration in Memorandum of Association.

III.

To decide whether a name of a company is appropriate and permissible.

IV.

To grant license to an association not for profit to be registered as a company.

V.

to accord approval of conversion of a public company into private company or vice versa.

VI.

Approval of prospectus.

VII.

To prescribe maximum rate of commission on issue of shares.

SECP

I.

To sanction issue of shares at discount.

II.

To grant extension in time for holding AGM in case of listed companies.

III.

To allow a company to make loan to a director.

IV.

To call for additional statement of accounts from companies.

V.

To appoint auditors in certain cases.

VI.

To prosecute a company or person found guilty as a consequence of investigation

SECP

I.

To make application to the court for winding up a company.

II.

To recommend penal of persons to the court for appointment as official liquidator.

III.

To impose fine as penalty.

IV.

To hear appeals against the orders of Registrar.

V.

To direct appearance of officers of companies.

REGISTRAR

Registrar means a registrar, an additional registrar, a joint registrar, a deputy registrar or an

assistant registrar, performing the duty or registration of companies under the Companies
Ordinance, 1984.

RIGHTS OF REGISTRAR

Rights to receive five copies of statutory report of a public company.

Right to extend holding of AGM other than statutory meeting of an unlisted company.

Right to receive documents for the incorporation of a company.

Right to inspect books of account and books and papers of a company.

DUTIES OF REGISTRAR

To keep the register of mortgages and charges of the companies;

To issue the certificate of incorporation of companies;

To issue the certificate of commencement of business to the companies;

To rectify the registers of the companies regarding a) Articles of Association, b) MOA; and c) any
mortgage or charge;etc.