Companies Act, 2017 Pakistan

Questions and Answers

What is the extent of the Companies Act, 2017?

It extends to the whole of South Asia.

It extends to the whole of Punjab.

It extends to the whole of Pakistan. (correct)

It extends to the whole of Asia.

What does 'alter' or 'alteration' include in the Companies Act, 2017?

Only making additions to a document.

Making of additions or omissions without substituting or destroying the main scheme of the document. (correct)

Destroying the main scheme of the document.

Only making omissions from a document.

What are 'articles' in the Companies Act, 2017?

The rules and regulations of a company.

The articles of association of a company framed in accordance with the company law or this Act. (correct)

The objectives of a company.

The laws of the country.

How are 'associated companies' and 'associated undertakings' defined in the Companies Act, 2017?

Any two or more companies or undertakings, or a company and an undertaking, interconnected with each other in the specified manner. Signup and view all the answers

What is 'authorised capital' or 'nominal capital' in the Companies Act, 2017?

Such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company. Signup and view all the answers

What is a 'banking company' in the Companies Act, 2017?

A banking company as defined in clause (c) of section 5 of the Banking Companies Ordinance, 1962. Signup and view all the answers

What does 'beneficial ownership of shareholders or officer of a company' mean in the Companies Act, 2017?

Ownership of securities beneficially owned, held or controlled by any officer or substantial shareholder directly or indirectly. Signup and view all the answers

What is excluded from determining the status of a company, undertaking or person as an associated company, associated undertaking or associated person?

All of the above. Signup and view all the answers

When does the Companies Act, 2017 come into force?

On a date to be appointed by the Federal Government or an authority or person authorized by it. Signup and view all the answers

What is the short title of the Act?

The Companies Act, 2017. Signup and view all the answers

Study Notes

The Companies Act, 2017

The Act may be called the Companies Act, 2017, and extends to the whole of Pakistan.
The Act comes into force at once, except for Section 456, which will come into force on a date to be appointed by the Federal Government.

Definitions

An "advocate" has the same meaning as assigned to it in Section 2 of the Legal Practitioners and Bar Councils Act, 1973.
"Alter" or "alteration" includes making additions or omissions without substituting or destroying the main scheme of a document.
"Articles" refer to the articles of association of a company framed in accordance with company law or this Act.

Associated Companies and Undertakings

Associated companies and undertakings mean two or more companies or undertakings interconnected with each other in specific ways, including:
- Common ownership or control of shares carrying not less than 20% of voting power.
- Common management or control.
- One company being a subsidiary of another.
- A modaraba managed by a company.

Associated Person

An associated person is someone who owns or controls shares carrying not less than 10% of voting power in a company or undertaking.
An associated person includes spouses, minor children, and those nominated by the Federal Government or a Provincial Government.

Other Definitions

"Authorised capital" or "nominal capital" means the maximum amount of share capital authorised by a company's memorandum.
A "banking company" is defined as in the Banking Companies Ordinance, 1962.
"Beneficial ownership of shareholders or officers" refers to ownership of securities directly or indirectly held or controlled by officers or substantial shareholders.