You are on page 1of 23

CORPORATE LAW

Week 1

Introduction to Corporate Law


By Muhammad Naveed Chohan

Wednesday, May 2, 2012

Department of Managemen 1 t Sciences

Outline
Introduction to Law Introduction to Corporate Law Law Making in Pakistan Judicial System in Pakistan Business Organisations in Pakistan Regulation of Business Organisations in Pakistan
Wednesday, May 2, 2012 2

Introduction to Law
What is Law? Law means rules, regulations and principles which regulate the conduct of human behaviour

Wednesday, May 2, 2012

Introduction to Law
What is Law? Law is the command of the sovereign
(Austin)

Law is the experience, developed by reasons and reasons, tested by experience


(Aristotle)

Wednesday, May 2, 2012

Introduction to Law

LAW

Wednesday, May 2, 2012

Introduction to Law
Kinds of Law:
Imperative Law Physical or Scientific Law Natural or Moral Law Conventional Law Customary Law Common Law Constitutional Law Administrative Law Civil Law Criminal Law Statutory Law Procedural Law International Law
6

Wednesday, May 2, 2012

Introduction to Law
Kinds of Law:
Imperative Law: Set of rules prescribed by the governing authority Obliging people to a course of conduct Have coercive power Physical of Scientific Law: General principles expressing the regularity harmony in universe Law of gravitation, law governing planetary motion, law of chemical combinations etc.

Wednesday, May 2, 2012

Introduction to Law
Kinds of Law:
Natural or Moral Law: Deals with the acts of mankind God has installed in the minds and hearts of mankind Natural law is also called divine law, the unwritten law and the law of reasons Conventional Law: Rules and regulations of voluntary organizations For example Law of Nations

Wednesday, May 2, 2012

Introduction to Law
Kinds of Law:
Customary Law: Comprises customs and usages observed in a particular community or Society Acquired the force of law Common Law: Judge made law Reflects customs and traditions Existing only in practice and not in writing

Wednesday, May 2, 2012

Introduction to Law
Kinds of Law:
Constitutional Law: Supreme law of a country Define fundamental rights of the people, the form and style of government Set boundary of working for institutions like legislator, the executive, the judiciary Administrative Law: Govern functioning of the administrative services Elaborates the relationships with public

Wednesday, May 2, 2012

10

Introduction to Law
Kinds of Law:
Civil Law: Law of the land Also known as law of lawyers, law of courts or Municipal law Criminal Law: Acts of commission and omission is known as crimes Crime is also known public wrong or offence against whole public State prosecute the offender Punishment according to laid penalty

Wednesday, May 2, 2012

11

Introduction to Law
Kinds of Law:
Statutory Law: Laws made by federal legislature (e.g. Pakistan Penal Code 1860) Laws made by provincial legislature (e.g. The Punjab Consumer Protection Act 2005) Procedural Law: Pertains to the procedure whereby the civil and criminal courts are administrated by courts (e.g. Criminal Procedure Code) International Law: Govern sovereign states in their relations Source in international agreements
12

Wednesday, May 2, 2012

Introduction to Corporate Law


What is Corporate Law? Corporate law is the study of how shareholders, directors, employees, creditors and other stakeholders such as consumers, the community and environment interact with one another under the internal rules of the firm

Wednesday, May 2, 2012

13

Introduction to Corporate Law


History of Corporate Law:
Some forms of companies in Ancient Rome and Ancient Greece First recognizable commercial associations were Medieval Guides Commercial enterprise under the lex mercatoria were in fact partnerships Royal Charters in Europe to merchant adventurers Rise of Joint Stock Companies Under Joint Stock Companies Act 1844 first step for modern companies Limited Liability Act 1855 Joint Stock Companies Act 1856 repelled the earlier company law In Salomon v. Salomon & Co. House of Lords in England confirmed the separate legal personality of the company After Independence Pakistan promulgated Companies Act 1913 Companies Ordinance 1984 repelled Companies Act 1913 Major Amendments in Companies Ordinance 1984 in 2002

Wednesday, May 2, 2012

14

Introduction to Corporate Law


Litigation under Corporate Law:
Under Article 18 of Constitution of Islamic Republic of Pakistan 1973 every citizen has the right to enter upon any lawful profession or occupation, and to conduct any lawful trade or business Any stakeholder in any organization can question rights and liabilities granted under corporate law High Courts under Article 199 and Supreme Court under Article 184 of Constitution of Islamic Republic of Pakistan 1973 can take suomoto action against corporate frauds Regulators can also take action against corporations for fraudulent activities or against mandate granted under registration

Wednesday, May 2, 2012

15

Introduction to Corporate Law


Major Corporate Matters under Corporate Law:
Bank of Punjab (BOP) Fraud National Insurance Corporation Limited (NICL) Fraud Fraud and Corruption in Pakistan International Airline (PIA) Pakistan Steal Case Appointments in Oil and Gas Regulatory Authority (OGRA) Corruption in Federal Board of Revenue (FBR) Appointments in National Bank of Pakistan (NBP)

Wednesday, May 2, 2012

16

Introduction to Corporate Law


Examples of International Corporate Collapses

Wednesday, May 2, 2012

17

Law Making in Pakistan


Ordinance

Act

President's Power under Article 89 Under Article 70 of constitution under Constitution Origination of bill Governors Power under Article 128 in National Assembly/Senate under Constitution Same Powers of Act Life of 4 Months by president and 3 month On approval is sent to other by governor house Senate/ National Assembly Parliament can extend it up to 4 months and Provincial assembly 3 months Parliament / Provincial assembly Signature of President can disapprove it/ approve it President/Governor can withdraw it
18

Wednesday, May 2, 2012

Judicial System in Pakistan


Supreme Court of Pakistan High Courts in 4 Provinces
+

High Court in Islamabad

Special Courts (Banking Courts, Corporate and Commercial Courts etc.)


Wednesday, May 2, 2012

District &Session Courts Civil Courts & Magistrate Courts


19

Business Organisations in Pakistan

Wednesday, May 2, 2012

20

Business Organisations in Pakistan


Kinds of Business Organizations in Pakistan:
Sole Proprietorship Partnership (Partnership Act 1932) Company (Companies Ordinance 1984) Public Limited Company Private Limited Company Single Member Company (SMC) Banking Companies (Banking Companies Ordinance 1962)
Wednesday, May 2, 2012 21

Regulation of Business Organisations in Pakistan


Sole Proprietorships (No Specific Regulation) Partnerships (Firm Registrar under Partnership Act 1932 ) Companies Non-Financial Companies [Securities and Exchange Commission of Pakistan (SECP) under SECP Act 1997] Non-Banking Financial Companies [Securities and Exchange Commission of Pakistan (SECP) under SECP Act 1997] Banking Companies [State Bank of Pakistan (SBP) under State Bank of Pakistan Act 1956]
Wednesday, May 2, 2012 22

End of Week #1 Lecture Presentation Thanks for Patience

Wednesday, May 2, 2012

23

You might also like