Learning Point

  📘 Law Governing Companies – II (Companies Act, 2017) 5.1 General Meetings Definition : Formal gatherings of company members (shareholders) to discuss and decide on business matters. Types: Annual General Meeting (AGM) : Held once a year. Extraordinary General Meeting (EGM) : Held for urgent matters. Example : XYZ Ltd holds an AGM to approve financial statements and declare dividends. Business Relevance: Ensures transparency Provides shareholder oversight 5.2 Meetings of Directors Meetings of the Board of Directors to make managerial decisions. Key Points: Must meet quarterly Decisions are made through resolutions Example : Board meeting to approve budget or appoint CEO. Advantage: Facilitates strategic planning Enhances governance 5.3 Secretary An officer responsible for administrative and compliance duties . Responsibilities: Prepare minutes of meetings File returns with SECP Ensure le...

  📘 Law Governing Companies – I (Companies Act, 2017) 4.1 Introduction to Companies Act, 2017 Definition : The Companies Act, 2017 is a legal framework that governs the formation, management, regulation, and dissolution of companies in Pakistan. Purpose: Modernize corporate law Promote ease of doing business Ensure corporate governance and investor protection Business Advantage : Provides a legal structure for starting and growing businesses with transparency and accountability. 4.2 Company Courts These are special courts or judicial benches designated to deal with company law disputes such as: Mismanagement Fraud Winding up Example : If a company is involved in shareholder dispute, it goes to a company bench of a High Court. 4.3 Corporate Law Authority (Now SECP) Securities and Exchange Commission of Pakistan (SECP) is the regulatory body under the Companies Act. Functions: Company registration Regulation of stock ...

  Partnership Law: 3.1 Definitions in Partnership Law Partnership is defined under Section 4 of the Partnership Act, 1932 : “A relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.” Key Terms: Partners : Persons who enter into the partnership. Firm : Collective name of the partners. Firm Name : Name under which the business is conducted. Example : Ali, Ahmed, and Ayesha start a bakery business together, agree to share profits and contribute capital. They form a partnership. Business Relevance: Enables sharing of capital, skills, and risk. Promotes entrepreneurship without needing large capital. 3.2 Types of Partnership General Partnership : Equal rights, unlimited liability. Particular Partnership : For a specific venture or period. Partnership at Will : No fixed term; can be dissolved at any time. Limited Partnership : S...

  Law of Sale of Goods 2.1 Definitions Sale of Goods : A contract whereby the seller transfers or agrees to transfer the ownership (property) in goods to the buyer for a price. ➡ Defined under Section 4(1) of the Sale of Goods Act, 1930 . Goods : Every kind of movable property other than actionable claims and money. Includes stock, shares, crops, etc. ➡ Defined in Section 2(7) . Buyer : A person who buys or agrees to buy goods. ( Section 2(1) ) Seller : A person who sells or agrees to sell goods. ( Section 2(13) ) Price : The money consideration for a sale of goods. ( Section 2(10) ) Contract of Sale : Includes both a sale (ownership transferred immediately) and an agreement to sell (ownership to be transferred in the future or upon certain conditions). 2.2 Formation of the Contract A contract for the sale of goods must fulfill the essentials of a valid contract under the Contract Act, 1872 : Essentials: Offer and Acceptance L...

  Introduction to Law and Law Governing Contracts Contract law is a branch of civil law that governs the formation, execution, and enforcement of agreements. The Contract Act, 1872 is the main legal framework in Pakistan regulating all aspects of contractual relationships. 1.1 Origin of the Contract Definition: The concept of a contract originates from the need to enforce promises made between two or more parties in society. Historically, contracts evolved from social norms to legally binding agreements. Example: In ancient times, a handshake or verbal promise was enough. With increasing complexity in trade and business, legal systems developed written, enforceable contracts to ensure fairness and accountability. 1.2 Definition of Contract Definition (Section 2(h), Contract Act 1872): A contract is an agreement enforceable by law. Explanation: A contract = Agreement + Legal enforceability. Example: If A agrees to sell a bike to B for Rs. 20,000 and...