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Corporate Law & Corporate Lawyers in Pakistan
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What is the Corporate Law? Who is a Corporate Lawyer?
Corporate law covers a number of different areas, including company registration and compliance. In this section, we will discuss the establishment of the Securities and Exchange Commission of Pakistan (SECP), along with capital markets in Pakistan. Additionally, we will explore free trade zones in Pakistan to see how this legislation may impact international business operations.
Establishment of the SECP
The Securities and Exchange Commission of Pakistan (SECP) was established in 1997 as a statutory body. It is responsible for regulating the capital markets in Pakistan and ensuring compliance with securities laws, rules and regulations. The SECP also plays an important role in promoting the development of capital markets by establishing international best practices, issuing guidelines/circulars on various aspects of securities market development, etc.
The SECP is also involved in regulating other financial institutions such as mutual funds, pension funds, insurance companies, etc., under its purview. In addition to these functions, it acts as a self-regulatory organization that resolves disputes between investors and brokers regarding their investments in exchanges or other trading venues operating within Pakistan.
The SECP operates independently from any central bank or other institution so that it can make independent decisions without being influenced by any external factors like political pressure from government officials or banks’ lobbying tactics for example; however recently there has been some controversy about this independence due to close connections between some senior staff members at both organizations which could be perceived as potential conflicts of interest since both entities have similar roles since they perform similar functions but operate separately simultaneously within one country only!
Company Registration and Compliance
- Company registration and compliance.
- Statutory reporting.
- Corporate governance.
Corporate governance, compliance and risk management solutions from RSM US LLP help companies meet their legal and regulatory obligations. We help our clients reduce risk and improve performance by providing tailored solutions that align with their business objectives.
Capital Markets in Pakistan
- A listing of securities is a statement of the total number, kind and aggregate par value (or in the case of debt securities if different) of all equity securities or debt securities which are listed and admitted to dealings on any stock exchange situated within Pakistan. It includes details such as the name, address and nationality of the issuer, mode(s) by which they were issued (e.g., private placement), their special characteristics (if any), nature and class or series within a class if applicable, their issue price/distribution price per security (if different for each type), the date on which admission was first made available for trading on any stock exchange situated within Pakistan without making an application under section 35B(2)(a), etc.
- Listing requirements:
- The Securities & Exchange Commission of Pakistan may determine appropriate listing requirements. These are currently the minimum paid-up capital requirement ($1 million) as well as minimum net worth requirements ($1 million). Companies with less than minimum paid-up capital will not be allowed to make applications for listing until they fulfil these requirements.
- In addition, companies must also meet other criteria determined by SECP depending upon nature/size/scale etc…
More information can be found on the SECP website.
For further information on the Companies Ordinance 1984 and Companies Act 2017, you can visit the Securities & Exchange Commission of Pakistan’s website (www.secp.gov.pk) or call us for a meeting.
Corporate Law regulates how investors, directors, employees, creditors, clients, workplaces, and other stakeholder groups interact. Business law includes laws that govern businesses (or legislation that governs service organizations). Known as industrial regulations or corporate law, industrial laws govern the rights, responsibilities, and conduct of people and businesses engaged in commerce, merchandising, and sales.
Corporation & Incorporation- What is it?
Corporations are business entities owned by shareholders who elect their board of directors to run them. The corporation is a separate legal entity that is responsible for its own actions. To create a corporation is called incorporation. The majority of corporations are for-profit, i.e. businesses, and non-profit, i.e. charities.
Corporate Law in the Subcontinent
Persian law largely governed the Indian subcontinent during the Mughal era, before the British colonized it. Pakistan’s legal system is largely based on standard law, which was introduced by the British.
Pakistan’s corporate/Business law is based on several la Partnership Act 1932, the Sale of Goods Act 1930, and the Contract Act 1872, which are both common law acts incorporated into the constitution as federal acts. The Companies Ordinance 1984 repealed the Contract Act of 1872. The rights of intellectual property have been protected by several ordinances over the years, each focusing on a different aspect.
The Significance of Corporate Law
Corporate law is based on the following concepts:
1. Legal Personality
A company can now use and sell its assets on its own since its sources have been merged into one. This allows it to become a separate entity. Creditors cannot seize assets.
Restricted Liability
A corporation is only responsible for protecting its assets when it sues another corporation. It is not possible to sue a corporation owner for their possessions as an individual. Limiting liability does not prevent corporate owners from taking risks and diversifying their investments.
3. Transferable Shares
The owner of a company does not have to stop operating just because he no longer wishes to own it. The transfer of shares of a corporation is much easier than transferring partnerships. The ability of shareholders to transfer ownership may be limited, but the fact that control can be transferred allows proprietors to make changes if they wish.
4. Delegated Administration
The way firms conduct their events varies from firm to firm. There are both directors and officers on the board. A board member appoints and supervises the officers, and investors validate their meaningful choices by electing the board members.
Managing and executing business deals on a daily basis is the responsibility of the officers. Both the board and officers have legal obligations. Those who work with the company can be assured that government actions are aligned with company needs by defining a management structure.
5. Ownership by Financiers
It is important to note that owners don’t directly run the firm. They reap profits from it as well. As a general rule, a proprietor’s decision-making authority and earnings share are proportional to his or her ownership stake.
What Does a Corporate Lawyer Do?
All aspects of corporate law are handled by corporate legal representatives. Corporations or corporations like entities, including limited liability companies (LLCs), partnerships, and collaborations, can be formed, established, and administered by these professionals. Corporate lawyers are typically responsible for handling the legal aspects of setting up new businesses. These include submitting documents of unification and complying with all local, state, and federal laws. A corporate lawyer assists a growing company with mergers and acquisitions, advises on guidelines, licenses innovations, and resolves any conflicts regarding procedures as the company grows. A business lawyer can also provide advice and planning related to mergers, acquisitions, and other significant transactions as part of their services.
Right Law Associates offers a range of legal services, including Corporate Law, Property Law, and Civil & Criminal Law.
Tasks of a Corporate Attorney
Expert attorneys provide the following services:
- Provide clients with legal advice on company purchases, case liability, and civil rights litigation sensitivity
- The jury will be selected, the movement will be argued, the attorney will consult with the judge, and the witnesses will be concerned during the trial
- Analyze regulations, rulings, and policies from an individual and business perspective
- Providing judges and juries with a brief summary of cases while serving as a counsel for clients before governmental agencies or in court
- Establish approaches and disagreements to discuss situations in order to initiate legal action or to create a defense
Corporate Lawyer’s Role
The term company law expert refers to experts specializing in the lawful operation of corporations. Such experts specialize in many fields, including:
- Joint ventures
- Mergers
- Acquisitions
- Licensing setups
- Service developments
- Securities regulation
- Company tax obligation
- Company contracts
- Accounts & Bookkeeping
If You are Looking for Expert Corporate Attorneys? We can Assist You!
We hope this article has given you an overview of the different types of legal entities, their advantages and their disadvantages. It is important to note that the type of company you choose should be based on your business goals, finances and other factors like legal compliance.
Do you need a corporate lawyer who will handle your business problems in a legal manner? You can get expert legal help with Right Law Associates. We’ve been serving Pakistan for the past 36 years in all legal matters. Please send us an email with your details or call us on phone so we can schedule an appointment. We will get back to you with the right advice.
