200 Pages Part 1 Flashcards
1
Q
What is the penalty for default under Sec. 137(10)(a) for a listed company?
A
A penalty of level 2 on the standard scale.
2
Q
What is the penalty for default under Sec. 137(10)(b) for a non-listed company?
A
A penalty of level 1 on the standard scale.
3
Q
Who can a body corporate authorize to represent it at a company meeting under Sec. 138(1)?
A
An individual authorized by a resolution of its board or governing body.
4
Q
What powers does a representative of a body corporate have at a company meeting under Sec. 138(1)?
A
The same powers as the body corporate, including voting rights.
5
Q
Can a body corporate that is a creditor appoint a representative for a creditors’ meeting under Sec. 138(2)?
A
Yes, by a resolution of its board or governing body.
6
Q
What rights does a creditor’s representative have under Sec. 138(2)?
A
The same powers as the creditor, including participating in the meeting.
7
Q
Who can the Federal Government appoint as its representative at a company meeting under Sec. 139(1)?
A
Any individual it thinks fit, appointed by the concerned Minister-in-Charge.
8
Q
What rights does a government-appointed representative have under Sec. 139(2)?
A
The same rights and powers as a member, including appointing a proxy.
9
Q
What must the notice of a general meeting state under Sec. 140(1)?
A
The general nature of each business to be considered and, for special resolutions, include the draft resolution.
10
Q
What percentage of voting power must members hold to propose a resolution under Sec. 140(2)?
A
Not less than 5% of the voting power in the company.
11
Q
When must members submit a resolution for a requisitioned meeting under Sec. 140(2)(a)?
A
Together with the requisition for the meeting.
12
Q
How many days before a general meeting must a resolution be submitted under Sec. 140(2)(b)?
A
At least 10 days before the meeting.
13
Q
What must a company do with a resolution proposed by members under Sec. 140(2)?
A
Circulate it forthwith to all members.
14
Q
How is a resolution decided at a general meeting under Sec. 141 unless a poll is demanded?
A
By a show of hands.
15
Q
What is conclusive evidence of a resolution’s outcome under Sec. 142(1)?
A
A declaration by the chairman on a show of hands.
16
Q
What additional evidence supports the chairman’s declaration under Sec. 142(2)?
A
An entry in the minutes recorded per Sec. 151.
17
Q
Who can demand a poll before or on the declaration of a show of hands under Sec. 143(1)?
A
Members with not less than one-tenth of the total voting power.
18
Q
Can a demand for a poll be withdrawn under Sec. 143(2)?
A
Yes, by the members who made the demand.
19
Q
When can a poll be conducted by secret ballot under Sec. 144?
A
If demanded by members with one-tenth voting power or ordered by the chairman.
20
Q
When must a poll on electing a chairman or adjournment be taken under Sec. 145(1)?
A
Forthwith.
21
Q
What is the maximum delay for taking a poll on other questions under Sec. 145(1)?
A
Not more than 14 days from the demand.
22
Q
Who scrutinizes votes during a poll under Sec. 145(2)?
A
The chairman or his nominee and a representative of the demanding members.
23
Q
What is the penalty for non-compliance with Sec. 145 under Sec. 145(3)?
A
Level 2 for listed companies, level 1 for others.
24
Q
When is a resolution at an adjourned meeting treated as passed under Sec. 146?
A
On the date it was actually passed, not an earlier date.
25
Who can the Commission direct to call a meeting under Sec. 147(1)?
The company, on its own motion or application by a director or member.
26
What can the Commission specify under Sec. 147(1)?
Ancillary directions, including that one member present constitutes a meeting.
27
What is the penalty for non-compliance with Sec. 147 under Sec. 148?
A penalty of level 3 on the standard scale.
28
Which companies can pass resolutions by circulation under Sec. 149(1)?
Private companies or public unlisted companies with not more than 50 members.
29
What is required for a resolution by circulation to be valid under Sec. 149(1)?
Signed by all members entitled to receive meeting notice.
30
Can a member revoke agreement to a resolution by circulation under Sec. 149(4)?
No, once signified, it cannot be revoked.
31
When must a special resolution be filed with the registrar under Sec. 150(1)?
Within 15 days of passing.
32
What must accompany every copy of articles after a special resolution under Sec. 150(2)?
A copy of the special resolution.
33
What is the penalty for non-compliance with Sec. 150 under Sec. 150(4)?
A penalty of level 1 on the standard scale.
34
What records must a company keep under Sec. 151(1)?
Resolutions passed outside general meetings and minutes of general meetings.
35
How long must records be preserved under Sec. 151(4)?
20 years in physical form, permanently in electronic form.
36
What is the penalty for non-compliance with Sec. 151 under Sec. 151(5)?
A penalty of level 1 on the standard scale.
37
How long must members be allowed to inspect meeting minutes under Sec. 152(1)?
At least 2 hours per day during business hours.
38
How soon must a copy of minutes be provided after a request under Sec. 152(2)?
Within 7 days of the request.
39
What is the penalty for refusing inspection under Sec. 152(3)?
A penalty of level 1 on the standard scale.
40
Who is ineligible to be a director under Sec. 153(a)?
A minor.
41
Who is ineligible to be a director under Sec. 153(b)?
A person of unsound mind.
42
Who is ineligible to be a director under Sec. 153(c)?
A person who has applied to be adjudicated as an insolvent with a pending application.
43
Who is ineligible to be a director under Sec. 153(d)?
An undischarged insolvent.
44
What is the minimum number of directors for a single member company under Sec. 154(1)(a)?
At least 1 director.
45
What is the minimum number of directors for a private company under Sec. 154(1)(b)?
Not less than 2 directors.
46
What is the minimum number of directors for a listed company under Sec. 154(1)(d)?
Not less than 7 directors.
47
What is the maximum number of directorships a person can hold under Sec. 155(1)?
As specified by the Commission, excluding listed subsidiaries.
48
How long do directors have to comply with the directorship limit under Sec. 155(2)?
Within 1 year of the Act’s commencement.
49
How long must a casual vacancy in a listed company be filled under Sec. 155(3)?
Within 90 days.
50
Who determines the first directors under Sec. 157(1)?
The subscribers of the memorandum.
51
How long do first directors hold office under Sec. 157(2)?
Until the first annual general meeting.
52
When do all directors retire under Sec. 158(1)(a)?
At the first annual general meeting.
53
How long can retiring directors continue functions under Sec. 158(1)?
Until successors are elected.
54
What must directors report to the registrar under Sec. 158(2)?
Any impediment to holding elections, 45 days before the due date.
55
What is the maximum delay for an AGM under Sec. 158(2)?
90 days, or as extended by the registrar.
56
Who can request the registrar to direct an AGM under Sec. 158(3)(b)?
Members holding one-tenth of voting power.
57
What is the penalty for non-compliance with Sec. 158(4)?
A fine of level 2 on the standard scale.
58
When must directors fix the number of directors to be elected under Sec. 159(1)?
Not later than 35 days before the general meeting.
59
How many days before an election must a candidate file notice under Sec. 159(3)?
Not later than 14 days.
60
How must a listed company publish election notices under Sec. 159(4)?
In English and Urdu newspapers with wide circulation.
61
How are directors elected in a company with share capital under Sec. 159(5)?
By cumulative voting based on shares held.
62
Who can apply to the Court to invalidate a director election under Sec. 160?
Members holding 10% of voting power, within 30 days.
63
How long is the term of office for an elected director under Sec. 161(1)?
3 years, unless otherwise specified.
64
Who can require a fresh election of directors under Sec. 162(1)?
A member acquiring requisite shareholding post-election.
65
How soon must a fresh election be held under Sec. 162(2)?
Within 30 days of the requisition.
66
What majority is required to remove a director under Sec. 163?
A resolution in general meeting, subject to voting thresholds.
67
Who can nominate directors under Sec. 164(1)?
Creditors or parties with contractual arrangements.
68
Are nominated directors subject to election provisions under Sec. 165(1)?
No, Secs. 158, 159, 161, 162, and 163 do not apply.
69
Who maintains the databank of independent directors under Sec. 166(1)?
An institute notified by the Commission.
70
What disqualifies a person as an independent director under Sec. 166(2)(a)?
Employment with the company or its subsidiaries within 3 years.
71
When must a director file consent with the registrar under Sec. 167(2)?
Within 15 days of giving consent.
72
What happens to a director’s acts if a defect is found under Sec. 168?
They remain valid until the defect is remedied.
73
What is the penalty for violating Secs. 154-168 under Sec. 169?
Level 2 penalty and possible 3-year director ban.
74
Who determines a director’s remuneration for extra services under Sec. 170(1)?
The board or company in general meeting.
75
When does a director vacate office under Sec. 171(1)(b)?
If absent from 3 consecutive board meetings without leave.
76
What can the Commission order under Sec. 172(1)?
Disqualification from directorship for up to 5 years.
77
What is the personal liability for debts under Sec. 173(1)(a)?
For debts incurred while managing a company under a disqualification order.
78
Can a director assign their office under Sec. 174(1)?
No, any assignment is void ab initio.
79
What is the quorum for a listed company’s board meeting under Sec. 176(1)?
One-third of directors or 4, whichever is greater.
80
How often must a public company’s board meet under Sec. 176(3)?
At least once per quarter.
81
What is the penalty for an undischarged insolvent acting as director under Sec. 177?
Up to 2 years imprisonment or Rs. 100,000 fine.
82
How long must board meeting minutes be preserved under Sec. 178(5)?
10 years physically, permanently electronically.
83
What is required for a board resolution by circulation under Sec. 179(1)?
Approval by a majority of entitled directors.
84
Can a company indemnify a director against negligence under Sec. 180?
No, such provisions are void except for specified insurance.
85
Are independent directors liable for all company acts under Sec. 181(1)?
No, only for acts with their knowledge and consent.
86
What loans are prohibited under Sec. 182(1)(a)?
Loans to a director or their relatives without members’ approval.
87
What is the penalty for violating Sec. 182(3)?
Up to Rs. 1 million fine or 1 year imprisonment.
88
What power does the board have under Sec. 183(2)(a)?
To issue shares.
89
What requires general meeting consent under Sec. 183(3)(a)?
Selling or leasing a sizeable undertaking.
90
What is the penalty for political contributions under Sec. 184(2)(b)?
Up to 2 years imprisonment and Rs. 1 million fine.
91
What is the penalty for distributing gifts under Sec. 185(2)?
A penalty of level 1 on the standard scale.
92
How long does the first chief executive hold office under Sec. 186(3)?
Until the first AGM or a shorter specified period.
93
When must a subsequent chief executive be appointed under Sec. 187(1)?
Within 14 days of directors’ election or vacancy.
94
What is the maximum term for a chief executive under Sec. 187(1)?
3 years.
95
Who determines the chief executive’s terms under Sec. 188(1)?
The board or company in general meeting.
96
Who is ineligible to be a chief executive under Sec. 189?
Anyone ineligible under Sec. 153 or disqualified under Secs. 171 or 172.
97
What majority is needed to remove a chief executive under Sec. 190(1)?
Three-fourths of the board or a special resolution.
98
Can a chief executive engage in competing business under Sec. 191(1)?
No, not in a public company.
99
When must a chairman be appointed in a listed company under Sec. 192(1)?
Within 14 days of directors’ election.
100
What percentage of members can apply to the Court under Sec. 286(1)?
Not less than 10% of issued share capital.
101
What can the Court order under Sec. 286(2)?
Regulate affairs, order share purchases, or reduce capital.
102
How soon must an order altering the memorandum be filed under Sec. 286(4)?
Within 14 days.
103
What can the Court set aside under Sec. 287(b)?
Fraudulent preferences within 90 days of the application.
104
What is the purpose of an interim order under Sec. 288?
To regulate company affairs pending a final order.
105
Does an order under Sec. 286 allow damage claims under Sec. 289?
No, it does not give rise to claims for damages.
106
What percentage of creditors can request an Administrator under Sec. 291(1)?
Creditors with 60% of paid-up capital.
107
What happens to management when an Administrator is appointed under Sec. 291(3)?
It vests in the Administrator; directors cease to function.
108
What financial deterioration triggers Sec. 291(1)(d)(i)?
Share value falls by more than 75% of par value.
109
Who approves a rehabilitation plan under Sec. 292(4)?
The concerned Minister-in-Charge of the Federal Government.
110
What can a rehabilitation plan include under Sec. 292(3)(a)?
Reduction of capital or amalgamation.
111
What are the modes of winding up under Sec. 293(1)?
By the Court, voluntary, or under Court supervision.
112
Who is liable as a contributory under Sec. 294(1)?
Present and past members, subject to qualifications.
113
When is a past member not liable under Sec. 294(1)(a)?
If they ceased to be a member for 1 year or more before winding up.
114
What is the liability of a director with unlimited liability under Sec. 295?
To contribute as if a member of an unlimited company.
115
What is a contributory under Sec. 296?
A person liable to contribute to assets upon winding up.
116
What is the nature of a contributory’s liability under Sec. 297?
A debt accruing when liability begins, payable when calls are made.
117
Who represents a deceased contributory under Sec. 298(a)?
Their legal representatives.
118
Who represents an insolvent contributory under Sec. 299(a)?
Their assignees in insolvency.
119
What circumstance allows winding up under Sec. 301(a)?
A special resolution by the company.
120
What default triggers winding up under Sec. 301(b)?
Failure to deliver statutory reports or hold statutory meetings.
121
When is a company unable to pay debts under Sec. 302(1)(a)?
If it neglects a demand for over Rs. 100,000 for 30 days.
122
Who can petition for winding up under Sec. 304?
The company, creditors, contributories, registrar, or Commission.
123
What condition must a contributory meet to petition under Sec. 304(a)(ii)?
Hold shares for 180 days in the last 18 months.
124
Can a petition be filed during voluntary winding up under Sec. 305(1)?
Yes, by any authorized person under Sec. 304.
125
When does winding up by Court commence under Sec. 306?
At the time of presenting the petition.
126
What is the effect of a winding up order under Sec. 312?
Operates in favor of all creditors and contributories.
127
How long after a winding up order can it be stayed under Sec. 313(1)?
Not later than 3 years.
128
How does the Court ascertain creditors’ wishes under Sec. 314(1)(b)?
By ordering meetings and appointing a chairman.
129
Who appoints the official liquidator under Sec. 315(1)?
The Court from a panel maintained by the Commission.
130
What is the maximum number of companies an official liquidator can handle under Sec. 315(2)?
Three at one time.
131
What grounds allow removal of an official liquidator under Sec. 316(1)(a)?
Misconduct.
132
How is the official liquidator’s remuneration determined under Sec. 317(1)?
By the Court based on task, experience, and company size.
133
How is the official liquidator described under Sec. 318?
As 'the official liquidator' of the specific company.
134
What are the duties of the official liquidator under Sec. 319(1)?
To conduct winding up proceedings as imposed by the Court.
135
Who must submit the statement of affairs under Sec. 320(2)?
Directors, chief executive, CFO, and secretary.
136
What is the time limit for submitting the statement of affairs under Sec. 320(4)?
15 days, extendable to 45 days.
137
What is the penalty for non-compliance with Sec. 320(6)?
A daily penalty of level 2 on the standard scale.
138
How soon must the official liquidator submit a report under Sec. 321(1)?
Within 60 days of the winding up order.
139
What must the liquidator’s report include under Sec. 321(1)(a)?
Details of assets, their location, and current value.
140
What can the Court order based on the liquidator’s report under Sec. 322(2)?
Sale of the company or its assets.
141
Who settles the list of contributories under Sec. 323(1)?
The Court after making a winding up order.
142
Who takes custody of company property under Sec. 324(1)?
The official liquidator or provisional manager.
143
What is the penalty for failing to deliver property under Sec. 324(5)?
Up to 2 years imprisonment or Rs. 500,000 fine.
144
What can the Court require under Sec. 325?
Delivery of money, property, or documents to the liquidator.
145
What powers does a body corporate’s representative have at a creditors’ meeting under Sec. 138(2)?
The same powers as the corporation, including voting.
146
What must the notice of a special resolution include under Sec. 140(1)?
The draft resolution.
147
What voting power is needed to demand a poll under Sec. 143(1)?
Not less than one-tenth of the total voting power.
148
Who can order a poll by secret ballot under Sec. 144?
The chairman or members with one-tenth voting power.
149
What happens if a poll is demanded on adjournment under Sec. 145(1)?
It must be taken forthwith.
150
What evidence is required for a resolution’s passage under Sec. 142(1)?
The chairman’s declaration on a show of hands.
151
Can the Commission call a meeting on a member’s application under Sec. 147(1)?
Yes, if default is made in holding required meetings.
152
What is the effect of a meeting called by the Commission under Sec. 147(2)?
It is deemed a duly called company meeting.
153
What businesses cannot be passed by circulation under Sec. 149(1)?
Those specified under Sec. 134(2) for AGMs.
154
What must accompany a resolution by circulation under Sec. 149(3)?
Necessary papers circulated to all members.
155
Can a member request a copy of a special resolution under Sec. 150(3)?
Yes, on payment of a fee set by the company.
156
What must minutes include under Sec. 151(1)(b)?
Proceedings and names of participants.
157
Who can inspect meeting records under Sec. 152(1)?
Members, without charge, during business hours.
158
What happens if a copy of minutes is not provided under Sec. 152(3)?
The registrar may direct immediate supply.
159
Who is ineligible under Sec. 153(e)?
A person convicted of an offence involving moral turpitude.
160
What exemption applies to Sec. 153(h)?
The Commission may grant exemption from holding an NTN.
161
What is the minimum number of directors for a public unlisted company under Sec. 154(1)(c)?
Not less than 3 directors.
162
What requirement applies to public interest companies under Sec. 154(1)?
Female representation as specified by the Commission.
163
Can a non-natural person be a director under Sec. 154(2)?
No, only a natural person can be a director.
164
What happens to excess directorships under Sec. 155(2)?
Must be reduced within 1 year of the Act’s commencement.
165
How are additional first directors appointed under Sec. 157(2)?
By members in a general meeting.
166
What must directors do if an AGM is delayed under Sec. 158(2)?
Report impediments to the registrar 45 days prior.
167
What can the registrar do under Sec. 158(3)?
Direct the company to hold an AGM or EGM for elections.
168
What must the notice of an election meeting state under Sec. 159(2)(a)?
The number of directors fixed.
169
How are votes calculated under Sec. 159(5)(a)?
Number of voting shares times the number of directors to be elected.
170
What can the Court invalidate under Sec. 160?
Election of directors if material irregularity occurs.
171
How long can a casual vacancy appointee serve under Sec. 161(2)?
For the remainder of the original director’s term.
172
What triggers a fresh election under Sec. 162(1)?
A member acquiring sufficient shares post-election.
173
What voting threshold prevents removal under Sec. 163(a)?
Votes against equal to or exceeding total votes divided by directors.
174
Who can nominate directors under Sec. 164(2)?
Government-owned corporations extending credit.
175
How long do nominated directors serve under Sec. 165(3)?
At the pleasure of the nominating body.
176
What defines an independent director under Sec. 166(2)?
No pecuniary or other relationship with the company.
177
What disqualifies an independent director under Sec. 166(2)(e)?
Being a close relative of promoters or major shareholders.
178
When must consent be filed under Sec. 167(2)?
Within 15 days of appointment.
179
What happens if a director’s disqualification is discovered under Sec. 168?
They cannot exercise rights until the defect is removed.
180
What additional penalty applies under Sec. 169?
Debarment from directorship for up to 3 years.
181
What limits director remuneration under Sec. 170(2)?
The scale approved by the company or board.
182
What triggers vacation of office under Sec. 171(1)(c)(i)?
Accepting an office of profit without company sanction.
183
What offence triggers disqualification under Sec. 172(1)(a)?
Conviction related to company management or liquidation.
184
What period limits disqualification under Sec. 172(1)(c)?
2 years from the company becoming insolvent.
185
What liability applies under Sec. 173(1)(b)?
Joint and several liability for debts incurred under disqualified instructions.
186
Can an alternate director be appointed under Sec. 174(2)?
Yes, with board approval, for absences over 90 days.
187
What is the penalty for acting as an unqualified director under Sec. 175?
A penalty of level 1 on the standard scale.
188
What happens if a quorum is absent under Sec. 176(1)?
Remaining directors form a quorum to fill vacancies.
189
What records must be kept under Sec. 178(1)?
Board resolutions and minutes with participant names.
190
How soon must draft board minutes be provided under Sec. 178(4)?
Within 14 days of the meeting.
191
What is required for a resolution by circulation under Sec. 179(2)?
Circulation to all entitled directors with necessary papers.
192
What indemnity is allowed under Sec. 180(a)?
Insurance for officers against liabilities.
193
What limits liability for non-executive directors under Sec. 181(1)?
Liability only for acts with knowledge and consent.
194
Who is a relative under Sec. 182(1)?
Spouse and minor children of the director.
195
What exception applies to Sec. 182(2)?
Companies providing loans in the ordinary course of business.
196
What powers does the board have under Sec. 183(2)(g)?
To approve financial statements.
197
What defines a sizeable part under Sec. 183(3)?
25% or more of asset value per audited statements.
198
What restriction applies under Sec. 183(4)?
No sale leading to closure without a viable plan.
199
What is prohibited under Sec. 184(1)(a)?
Contributions to political parties.
200
What is the penalty for gifts under Sec. 185(2)?
A penalty of level 1 on the standard scale.
201
Who nominates the first chief executive under Sec. 186(2)?
Subscribers of the memorandum.
202
Can the Government nominate a chief executive under Sec. 186(4)?
Yes, for public sector companies.
203
What happens if a chief executive’s successor is not appointed under Sec. 187(3)?
They continue until a successor is appointed.
204
Who determines a nominated chief executive’s terms under Sec. 188(2)?
The Government.
205
What disclosure is required under Sec. 191(2)?
Details of competing business interests upon appointment.
206
What is the chairman’s term in a listed company under Sec. 192(1)?
3 years unless resigned or removed.
207
What information must accompany a share transfer offer under Sec. 285(5)(a)?
Specified information about the offer.
208
What penalty applies under Sec. 285(7)?
Level 1 penalty for issuing an unregistered circular.
209
What grounds allow an application under Sec. 286(1)?
Unlawful, fraudulent, or oppressive conduct.
210
What must the Court consider under Sec. 286(2)(b)?
That winding up would unfairly prejudice members or creditors.
211
What restriction applies under Sec. 286(3)?
No further memorandum changes without Court leave.
212
What can the Court modify under Sec. 287(a)?
Agreements suffering from conflict of interest.
213
What contracts can the Administrator terminate under Sec. 291(4)?
Those benefiting directors to the detriment of members.
214
When can the Commission end an Administrator’s role under Sec. 291(6)?
When the purpose of the appointment is fulfilled.
215
What penalty applies under Sec. 291(9)?
Level 3 penalty for obstructing the Administrator.
216
Who declares a sick company under Sec. 292(1)?
The concerned Minister-in-Charge of the Federal Government.
217
What variation can a rehabilitation plan include under Sec. 292(3)(c)?
Changes in creditor rights or debt terms.
218
What penalty applies under Sec. 292(11)?
Up to 3 years imprisonment and Rs. 5 million fine.
219
What liability applies to past members under Sec. 294(1)(c)?
Only if present members cannot satisfy contributions.
220
What exemption applies under Sec. 294(1)(f)?
Insurance policies restricting member liability.
221
What additional liability applies under Sec. 294(2)?
Unpaid share amounts in a company limited by guarantee.
222
When is a past director not liable under Sec. 295(a)?
If they ceased office 1 year before winding up.
223
What rights does a fully paid shareholder retain under Sec. 296?
Rights as a contributory without liabilities.
224
What happens if a contributory dies under Sec. 298(a)?
Legal representatives become contributories.
225
What can be proved against an insolvent estate under Sec. 299(b)?
Estimated value of future calls.
226
What triggers winding up under Sec. 301(e)?
Membership falls below 3 for public or 2 for private companies.
227
What unlawful activity triggers winding up under Sec. 301(g)(i)?
Carrying on fraudulent activities.
228
What debt amount triggers Sec. 302(1)(a)?
Over Rs. 100,000 unpaid for 30 days after demand.
229
What must a contingent creditor provide under Sec. 304(d)?
Security for costs and a prima facie case.
230
What must the Court be satisfied of under Sec. 305(2)?
That voluntary winding up cannot continue properly.
231
Who can apply to stay winding up under Sec. 313(1)?
Creditors, contributories, registrar, or Commission.
232
What experience is required for the liquidator panel under Sec. 315(3)?
At least 10 years in accounting, finance, or law.
233
What must a liquidator disclose under Sec. 315(5)?
Conflict of interest within 7 days of appointment.
234
What can creditors request under Sec. 315(9)?
Appointment of a liquidator not on the panel.
235
What happens if a liquidator resigns under Sec. 317(5)?
They refund any remuneration received.
236
What happens if a liquidator is convicted under Sec. 319(4)?
Disqualified for 5 years from company offices.
237
What particulars are required under Sec. 320(1)(c)?
Details of creditors and securities.
238
Who can inspect the statement of affairs under Sec. 320(8)?
Creditors or contributories, on payment of a fee.
239
What must the liquidator report under Sec. 321(2)?
Any fraud in the company’s formation or management.
240
What can the Court revise under Sec. 322(1)?
The time limit for completing winding up.
241
What cooperation is required under Sec. 324(3)?
Full cooperation from promoters and officers.
242
What percentage of share capital must members hold to apply under Sec. 286(1)?
Not less than 10%.
243
What can the Court order under Sec. 287(c)?
Changes in management if just and equitable.
244
What percentage of creditors can trigger Sec. 291(1)?
60% of paid-up capital.
245
What financial ratio triggers Sec. 291(1)(d)(ii)?
Debt equity ratio beyond 9:1.
246
What publication is required under Sec. 292(4)?
The rehabilitation plan in the official Gazette.
247
What voting power is needed to demand a poll under Sec. 144?
One-tenth of the total voting power.
248
What must the chairman regulate under Sec. 145(3)?
The manner in which a poll is taken.
249
What can one member constitute under Sec. 147(1)?
A meeting, if directed by the Commission.
250
What must be authenticated under Sec. 151(2)?
Minutes by the chairman of the meeting.
251
Who is ineligible under Sec. 153(g)?
A person lacking fiduciary behavior per Sec. 212.
252
What applies to listed companies under Sec. 154(1)(d)?
At least 7 directors.
253
What notice period applies under Sec. 159(3)?
14 days before the election meeting.
254
What voting method applies under Sec. 159(5)?
Cumulative voting for companies with share capital.
255
What can disqualify an independent director under Sec. 166(2)(g)?
Serving more than 3 consecutive terms.
256
What vacancy triggers Sec. 171(1)(a)?
Becoming ineligible under Sec. 153.
257
What misconduct triggers Sec. 172(1)(e)?
Fraud or misfeasance towards the company.
258
What restriction applies under Sec. 174(3)?
Alternate director vacates office when the appointer returns.
259
What meetings must occur under Sec. 176(3)?
Quarterly board meetings for public companies.
260
What business is prohibited under Sec. 191(1)?
Competing business by a public company CEO.
261
What responsibility does the chairman have under Sec. 192(3)?
Leadership of the board.
262
What must a transfer offer disclose under Sec. 285(5)(b)?
Steps to ensure cash availability.
263
What alteration is restricted under Sec. 286(3)?
Changes inconsistent with a Court order.
264
What period applies under Sec. 287(b)?
90 days before the application.
265
What appeal is available under Sec. 291(8)?
To the Minister-in-Charge within 60 days.
266
What loss threshold triggers Sec. 291(1)(f)?
Accumulated losses exceeding 60% of paid-up capital.
267
What rights can be varied under Sec. 292(3)(b)?
Shareholders’ rights and obligations.
268
What exemption applies under Sec. 294(1)(g)?
Sums due to members not treated as debts.
269
What condition applies under Sec. 301(i)?
Just and equitable grounds for winding up.
270
What demand triggers Sec. 302(1)(a)?
A written demand for over Rs. 100,000.
271
What sanction is required under Sec. 304(b)?
Commission sanction for registrar petitions.
272
What report is required under Sec. 313(2)?
A report from the official liquidator.
273
What experience qualifies a liquidator under Sec. 315(3)?
10 years in specified fields.
274
What security can the Court require under Sec. 315(8)?
Security from the official liquidator.
275
What assets are included under Sec. 320(1)(a)?
All company assets, debts, and liabilities.
276
What fraud can the liquidator report under Sec. 321(2)?
Fraud by directors since formation.
277
What steps can the Court order under Sec. 322(4)?
Measures to protect company assets.
278
What distinguishes contributories under Sec. 323(2)?
Those in their own right vs. representatives.
279
What must be surrendered under Sec. 324(2)?
Money, property, or books in custody.
280
What offence applies under Sec. 320(9)?
Falsely claiming to be a creditor under PPC Sec. 182.
281
What must the Court consider under Sec. 286(2)(a)?
Evidence of oppressive or unlawful conduct.
282
What intent triggers Sec. 291(1)(b)?
Intent to defraud members or creditors.
283
What publication follows approval under Sec. 292(13)?
The rehabilitation plan in the official Gazette.
284
What liability applies under Sec. 294(1)(d)?
Limited to unpaid share amounts.
285
What activities are unlawful under Sec. 301(g)(ii)?
Business prohibited by Pakistani law.
286
What evidence does the Court consider under Sec. 314(1)(a)?
Sufficient evidence of creditors’ or contributories’ wishes.
287
What declaration is required under Sec. 315(5)?
Disclosure of conflict within 7 days.
288
What expenses are covered under Sec. 320(5)?
Reasonable expenses for preparing the statement.
289
What viability must the liquidator assess under Sec. 321(3)?
The viability of the company’s business.
290
What can the Court dispense with under Sec. 323(1)?
Settlement of the contributory list if unnecessary.
291
What cooperation is mandated under Sec. 324(3)?
Full cooperation from company officers.
292
What percentage triggers Sec. 286(1) for creditors?
10% of paid-up capital.
293
What contracts can be modified under Sec. 287(a)?
Those prejudicial to members.
294
What operation triggers Sec. 291(1)(e)?
Non-operation for over 2 years.
295
What capital reduction is allowed under Sec. 292(3)(a)?
Reduction per Sec. 89.
296
What debt is created under Sec. 297?
A debt payable when calls are made.
297
What petition condition applies under Sec. 304(a)(i)?
Membership below the minimum.
298
What report triggers investigation under Sec. 322(3)?
A report of fraud from the liquidator.
299
What property is deemed in custody under Sec. 324(4)?
All company property from the order date.
300
What powers does the Administrator have under Sec. 291(3)?
All powers of the board.
301
What alteration can the plan include under Sec. 292(3)(h)?
Changes to the memorandum or articles.
302
What qualifications limit liability under Sec. 294(1)?
Time since ceasing membership and debt timing.
303
What licence revocation triggers Sec. 301(k)?
Revocation of the company’s sole licensed activity.
304
What opportunity must be given under Sec. 304(c)?
A chance for the company to be heard.
305
What panel maintains liquidators under Sec. 315(1)?
A panel maintained by the Commission.
306
What grounds justify removal under Sec. 316(1)(c)?
Professional incompetence.
307
What particulars are required under Sec. 320(1)(g)?
Details of pending suits.
308
What intellectual property is reported under Sec. 321(1)(g)?
Trademarks and intellectual properties.
309
What sale can the Court order under Sec. 322(2)?
Sale of the company as a going concern.
310
What rectification can the Court perform under Sec. 323(1)?
Rectify the register of members.
311
What failure triggers penalty under Sec. 324(5)?
Failure to cooperate without reasonable cause.
312
What can the Court order under Sec. 286(2)?
Purchase of shares by the company.
313
What performance issue triggers Sec. 291(1)(d)?
Deterioration affecting production.
314
What debt relief can the plan provide under Sec. 292(3)(c)?
Debt rescheduling or conversion.
315
What members are liable under Sec. 294(1)?
Present and past members.
316
What petition can the registrar file under Sec. 304(b)?
A winding up petition with Commission sanction.
317
What wishes does the Court ascertain under Sec. 314(2)?
Wishes based on debt value or voting power.
318
What restriction applies under Sec. 315(10)?
No resignation before conclusion except for disability.
319
What costs must be covered under Sec. 320(5)?
Expenses incurred in statement preparation.
320
What subsidiaries are reported under Sec. 321(1)(i)?
Details of holding and subsidiary companies.
321
What committee can assist under Sec. 322(2)?
A sale committee of creditors and officers.
322
What assets must be applied under Sec. 323(1)?
Company assets to discharge liabilities.
323
What claim can the Court require under Sec. 325?
Actionable claims the company is entitled to.
324
What return deprivation triggers Sec. 291(1)(c)?
No adequate dividend for 3 years.
325
What share acquisition can the plan include under Sec. 292(3)(d)?
Acquisition on specified terms.
326
What restriction applies under Sec. 294(1)(e)?
Liability limited to the guarantee amount.
327
What oppression triggers Sec. 301(g)(iii)?
Oppression of minority members.
328
What security must a creditor provide under Sec. 304(d)?
Reasonable security for costs.
329
What limitation applies under Sec. 313(1)?
Application within 3 years of the order.
330
What conduct code applies under Sec. 315(13)?
A code specified by the Commission.
331
What valuation is required under Sec. 321(1)(a)?
Current value by a registered valuer.
332
What investigation can the Court order under Sec. 322(3)?
Investigation under Sec. 257 for fraud.
333
What prejudice does Sec. 286(5) preserve?
Rights to other remedies or actions.
334
What employment can the Administrator terminate under Sec. 291(4)?
Employment benefiting directors detrimentally.
335
What voting rights can the plan vary under Sec. 292(3)(e)?
Special rights on new shares.
336
What insurance exemption applies under Sec. 294(1)(f)?
Policies restricting liability.
337
What malfeasance triggers Sec. 301(g)(iv)?
Fraud or malfeasance by management.
338
What hearing is required under Sec. 304(c)?
An opportunity for company representation.
339
What disability allows resignation under Sec. 315(10)?
Personal disability satisfactory to the Court.
340
What cash balance is reported under Sec. 321(1)(b)?
Cash in hand and at the bank.
341
What dissolution can the Court revise under Sec. 322(1)?
The time limit for dissolution.
342
What distinction is made under Sec. 323(2)?
Contributories in their own right vs. representatives.
343
What hearing is required under Sec. 291(1)?
An opportunity for the company to be heard.
344
What director removal can the plan include under Sec. 292(3)(f)?
Removal and appointment of directors.
345
What debts are contributories liable for under Sec. 294(1)?
Debts, liabilities, and winding up costs.
346
What public policy violation triggers Sec. 301(g)?
Activities against public policy.
347
What prima facie case is needed under Sec. 304(d)?
A case for winding up by a contingent creditor.
348
What professional experience is required under Sec. 315(3)?
10 years as specified by the Commission.
349
What contingent liabilities are reported under Sec. 321(1)(d)?
Existing and contingent liabilities.
350
What preservation can the Court order under Sec. 322(4)?
Steps to preserve asset value.
351
What penalty applies under Sec. 291(9)?
Level 3 for obstructing the Administrator.
352
What accounting changes can the plan alter under Sec. 292(3)(h)?
Changes in accounting policy.
353
What adjustment rights apply under Sec. 294(1)?
Adjustment of contributories’ rights among themselves.
354
What failure to act triggers Sec. 301(g)(v)?
Refusal to follow memorandum or Act provisions.
355
What particulars must the company provide under Sec. 304(e)?
Assets, liabilities, and pending suits.
356
What dispute resolution applies under Sec. 315(7)?
Referral to the Court in chambers.
357
What unsecured debts are reported under Sec. 321(1)(d)?
Details of unsecured debts.
358
What criminal complaint can the Court direct under Sec. 322(3)?
A complaint against those involved in fraud.
359
What actionable claims are taken under Sec. 324(1)?
Claims the company is entitled to.
360
What directions can the Commission issue under Sec. 291(10)?
Directions on the Administrator’s powers.
361
What contract cancellation can the plan include under Sec. 292(3)(g)?
Cancellation of existing contracts.
362
What past member exemption applies under Sec. 294(1)(b)?
No liability for debts after ceasing membership.
363
What minority is defined under Sec. 301 Explanation II?
Members with 10% of equity share capital.
364
What opportunity is required under Sec. 304(b)?
A chance for the company to make a representation.
365
What notice is required under Sec. 315(9)?
Notice to the registrar for creditor appointments.
366
What negotiable securities are reported under Sec. 321(1)(b)?
Securities held by the company.
367
What sale committee can the Court appoint under Sec. 322(2)?
A committee of creditors and officers.
368
What register can the Court rectify under Sec. 323(1)?
The register of members.
369
What directions can the Court give under Sec. 325?
Time limits for delivery of property.
370
What appeal lies under Sec. 291(8)?
To the Minister-in-Charge within 60 days.
371
What share issuance can the plan include under Sec. 292(3)(e)?
Issuance of shares with special rights.
372
What contribution limit applies under Sec. 294(1)(d)?
Limited to unpaid share amounts.
373
What fraudulent scheme triggers Sec. 301 Explanation I(a)?
Schemes promising payment by chance or lottery.
374
What assets must the company detail under Sec. 304(e)?
Particulars of its assets and liabilities.
375
What restriction applies under Sec. 315(2)?
No more than 3 companies at a time.
376
What secured debts are reported under Sec. 321(1)(d)?
Details of secured debts and securities.
377
What enhancement can the Court order under Sec. 322(4)?
Measures to enhance asset value.
378
What regulations can the Commission make under Sec. 291(12)?
Regulations to carry out Sec. 291.
379
What debt conversion can the plan include under Sec. 292(3)(c)?
Conversion of debt into shares.
380
What past director liability applies under Sec. 295?
Liability as if in an unlimited company.
381
What pyramid scheme triggers Sec. 301 Explanation I(b)?
Raising unauthorized deposits or Ponzi schemes.
382
What business operations must be detailed under Sec. 304(e)?
Details of the company’s business operations.
383
What accreditation must liquidators comply with under Sec. 315(13)?
Professional accreditation programs.
384
What capital details are reported under Sec. 321(1)(c)?
Authorised and paid-up capital.
385
What completion time can the Court fix under Sec. 322(1)?
A time limit for winding up proceedings.
386
What calls can the Court dispense with under Sec. 323(1)?
Calls on contributories if unnecessary.
387
What custody is deemed under Sec. 324(4)?
Court custody from the order date.
388
What directions can the Commission issue under Sec. 291(10)?
Instructions on managing the company.
389
What rules can the Federal Government make under Sec. 292(14)?
Rules to carry out Sec. 292.
390
What contribution qualifications apply under Sec. 294(1)?
Subject to time and debt timing qualifications.
391
What moral hazard triggers Sec. 301 Explanation I(c)?
Activities notified by the Commission.
392
What suits must the company detail under Sec. 304(e)?
Pending suits or proceedings.
393
What panel is recommended by under Sec. 315(1)?
The State Bank of Pakistan.
394
What debts due are reported under Sec. 321(1)(e)?
Debts due to the company.
395
What viability steps can the liquidator suggest under Sec. 321(3)?
Steps to maximize asset value.
396
What cooperation must officers provide under Sec. 324(3)?
Full cooperation to the liquidator.
397
What finality applies under Sec. 291(11)?
Commission orders are final and unquestionable.
398
What binding effect applies under Sec. 292(6)?
The plan is enforceable despite other laws.
399
What insurance contract is valid under Sec. 294(1)(f)?
Contracts making company funds liable.
400
What just cause triggers Sec. 301(i)?
Just and equitable grounds for winding up.
401
What hearing must the Court provide under Sec. 304(c)?
A hearing after investigation reveals fraud.
402
What limit applies under Sec. 315(2)?
Three companies maximum for a liquidator.
403
What contributory debts are reported under Sec. 321(1)(f)?
Debts due from contributories.
404
What dissolution can the Court order under Sec. 322(1)?
Dissolution of the company.
405
What adjustment can the Court make under Sec. 323(1)?
Adjustment of contributories’ rights.
406
What property must be protected under Sec. 324(1)?
All property and effects of the company.
407
What instructions can the Administrator seek under Sec. 291(10)?
Instructions on management conduct.
408
What override applies under Sec. 292(6)?
Overrides memorandum and articles.
409
What member sums are considered under Sec. 294(1)(g)?
Sums for final adjustments among contributories.
410
What licence condition triggers Sec. 301(l)?
Revocation of a Sec. 42 licence.
411
What investigation triggers Sec. 304(c)?
Investigation revealing fraudulent purpose.
412
What provisional powers can the Court limit under Sec. 315(4)?
Powers of the provisional manager.
413
What legal cases are reported under Sec. 321(1)(j)?
Details of legal cases by or against the company.
414
What fraud report can the liquidator make under Sec. 321(2)?
Fraud in promotion or formation.
415
What protection can the Court order under Sec. 322(4)?
Steps to protect company assets.
416
What preservation must the liquidator ensure under Sec. 324(1)?
Preservation of company properties.
417
What override applies under Sec. 291(13)?
Overrides other laws and company documents.
418
What enforceability applies under Sec. 292(6)?
The plan is valid and binding.
419
What liability limit applies under Sec. 294(2)?
Additional liability for unpaid shares.
420
What public policy violation triggers Sec. 301(g)?
Business against public policy.
421
What representation must the company be given under Sec. 304(b)?
A chance to be heard before sanction.
422
What restriction applies under Sec. 315(10)?
No quitting before conclusion except for disability.
423
What contracts are detailed under Sec. 321(1)(h)?
Subsisting contracts and joint ventures.
424
What sale can the Court order under Sec. 322(2)?
Sale of company assets or parts.
425
What collection must the Court order under Sec. 323(1)?
Collection of company assets.
426
What delivery can the Court require under Sec. 325?
Delivery of books and papers.
427
What management vests in under Sec. 291(3)?
The Administrator upon appointment.
428
What registration follows under Sec. 292(13)?
Registration with the registrar.
429
What contribution exemption applies under Sec. 294(1)(c)?
Past members liable only if present members fail.
430
What suspension triggers Sec. 301(m)?
A listed company suspending business for a year.
431
What opportunity must the Commission provide under Sec. 304(c)?
An opportunity for the company to respond.
432
What experience qualifies under Sec. 315(3)?
10 years in accounting, finance, or law.
433
What formation details are reported under Sec. 321(2)?
Manner of company promotion or formation.
434
What completion must the liquidator ensure under Sec. 319(3)?
Completion within the Court’s time limit.
435
What measures can the Court take under Sec. 322(4)?
Measures to enhance or preserve value.
436
What control must the liquidator take under Sec. 324(1)?
Control of all company property and claims.
437
What finality applies under Sec. 291(11)?
Commission decisions are final.
438
What modification can the Minister make under Sec. 292(9)?
Variation or rescission of the plan.
439
What debt competition applies under Sec. 294(1)(g)?
Member sums not debts in creditor competition.
440
What membership reduction triggers Sec. 301(e)?
Below 3 for public, 2 for private companies.
441
What sanction must the registrar obtain under Sec. 304(b)?
Commission sanction for winding up petitions.
442
What panel does the Commission maintain under Sec. 315(1)?
A panel for provisional managers and liquidators.
443
What further reports can the liquidator make under Sec. 321(4)?
Additional reports if directed by the Court.
444
What hearing can the Court hold under Sec. 322(1)?
Hearing creditors or contributories.
445
What discharge must the Court apply under Sec. 323(1)?
Application of assets to discharge liabilities.
446
What steps must the liquidator take under Sec. 324(1)?
Steps to protect company properties.
447
What directions can the Minister issue under Sec. 292(10)?
Directions for plan implementation.
448
What guarantee liability applies under Sec. 294(1)(e)?
Limited to the guaranteed amount.
449
What fraudulent activity triggers Sec. 301(g)(i)?
Unlawful or fraudulent activities.
450
What costs security is required under Sec. 304(d)?
Security deemed reasonable by the Court.
451
What casual vacancy process applies under Sec. 315(11)?
Court appointment from the panel.
452
What secret reserves can be required under Sec. 320(1)(h)?
Information on secret reserves.
453
What time limit does Sec. 322(1) set?
A fixed time for winding up completion.
454
What liability discharge applies under Sec. 323(1)?
Discharge of company liabilities.
455
What actionable claims must be controlled under Sec. 324(1)?
Claims the company appears entitled to.
456
What supervision does the Minister provide under Sec. 292(10)?
Supervision of plan implementation.
457
What adjustment rights are settled under Sec. 294(1)?
Rights of contributories among themselves.
458
What revocation triggers Sec. 301(l)?
Revocation of a Sec. 42 licence.
459
What investigation condition applies under Sec. 304(c)?
Investigation showing fraud or oppression.
460
What limit applies under Sec. 315(2)?
Three simultaneous company appointments.
461
What promotion fraud is reported under Sec. 321(2)?
Fraud in company promotion.
462
What viability report does the liquidator submit under Sec. 321(3)?
Report on business viability.
463
What collection does the Court oversee under Sec. 323(1)?
Collection of company assets.
464
What preservation steps are required under Sec. 324(1)?
Steps to preserve company effects.
465
What ancillary matters can the Minister address under Sec. 292(9)?
Matters ancillary to plan implementation.
466
What past member liability applies under Sec. 294(1)(a)?
No liability if ceased 1 year before winding up.
467
What business suspension triggers Sec. 301(m)?
Suspension for a whole year by a listed company.
468
What hearing opportunity applies under Sec. 304(c)?
A hearing post-investigation.
469
What panel removal grounds apply under Sec. 315(12)?
Misconduct, fraud, or incompetence.
470
What officer fraud is reported under Sec. 321(2)?
Fraud by officers since formation.
471
What completion revision can the Court make under Sec. 322(1)?
Revision of the completion time limit.
472
What asset application does the Court order under Sec. 323(1)?
Application of assets to liabilities.
473
What property control does the liquidator assume under Sec. 324(1)?
Control of all company effects.
474
What ancillary directions can the Minister issue under Sec. 292(9)?
Directions as deemed expedient.
475
What debt limit applies under Sec. 294(1)(d)?
Limited to unpaid share contributions.
476
What oppressive conduct triggers Sec. 301(g)(iii)?
Conduct oppressive to minority members.
477
What prima facie evidence is needed under Sec. 304(d)?
Evidence for winding up by contingent creditors.
478
What vacancy does the Court fill under Sec. 315(11)?
Casual vacancy due to death or resignation.
479
What personal assets can be required under Sec. 320(1)(h)?
Personal assets of directors.
480
What sale direction can the Court give under Sec. 322(2)?
Direction for asset sale.
481
What register rectification applies under Sec. 323(1)?
Rectification of the member register.
482
What property surrender can the Court order under Sec. 325?
Surrender of company property.
483
What implementation does the Minister supervise under Sec. 292(10)?
Implementation of the rehabilitation plan.
484
What unlimited liability applies under Sec. 295?
Further contribution as an unlimited company member.
485
What moral hazard triggers Sec. 301 Explanation I(c)?
Business notified as a moral hazard.
486
What business details are required under Sec. 304(e)?
Details of company business operations.
487
What code must liquidators follow under Sec. 315(13)?
A specified code of conduct.
488
What contingent liabilities are detailed under Sec. 321(1)(d)?
Contingent liabilities of the company.
489
What preservation measures can the Court order under Sec. 322(4)?
Measures to preserve asset value.
490
What asset collection does the Court order under Sec. 323(1)?
Collection of all company assets.
491
What employee cooperation is required under Sec. 324(3)?
Cooperation from past and present employees.
492
What binding nature applies under Sec. 292(6)?
The plan is binding despite other provisions.
493
What past director exemption applies under Sec. 295(a)?
No liability if ceased 1 year before winding up.
494
What unlawful scheme triggers Sec. 301 Explanation I(a)?
Schemes based on chance or lottery.
495
What liability details are required under Sec. 304(e)?
Particulars of company liabilities.
496
What professional programs must liquidators complete under Sec. 315(13)?
Specified accreditation programs.
497
What secured debt details are reported under Sec. 321(1)(d)?
Particulars of securities given.
498
What fraud investigation can the Court order under Sec. 322(3)?
Investigation into reported fraud.
499
What discharge application does the Court oversee under Sec. 323(1)?
Application of assets to discharge debts.
