week 1 - introduction to corporate law

8/3/2019 Week 1 - Introduction to Corporate Law

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CORPORATE LAWWeek 1

Introduction to Corporate Law

Departmentof

Management Sciences

By

Muhammad Naveed Chohan

Wednesday, May 2, 2012 1


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OutlineOutline


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


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Introduction to LawIntroduction to Law


What is Law?

Law means rules, regulations and principles which regulate

the conduct of human behaviour


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Introduction to LawIntroduction to LawWhat is Law?

Law is the command of the sovereign

(Austin)

Law is the experience, developed by reasons and reasons,

tested by experience

(Aristotle)


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Introduction to LawIntroduction to Law

LAW


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Introduction to LawIntroduction to LawKinds 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


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Introduction to LawIntroduction to LawKinds 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.


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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 ofreasons

Conventional Law:

Rules and regulations of voluntary organizations For example Law of Nations


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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


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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


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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


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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


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Introduction to Corporate LawIntroduction to Corporate LawWhat 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 internalrules of the firm


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Introduction to Corporate LawIntroduction to Corporate LawHistory of Corporate Law: Some forms of companies inAncient Rome and Ancient Greece First recognizable commercial associations wereMedieval Guides Commercial enterprise under the lex mercatoria were in fact

partnerships

Royal Charters in Europe to merchant adventurers Rise ofJoint Stock Companies UnderJoint Stock Companies Act 1844 first step for modern

companies Limited Liability Act 1855

Joint Stock Companies Act 1856repelled 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

MajorAmendments in Companies Ordinance 1984 in 2002


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Introduction to Corporate LawIntroduction to Corporate LawLitigation 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 suo-

moto action against corporate frauds Regulators can also take action against corporations for fraudulent

activities or against mandate granted under registration


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Introduction to Corporate LawIntroduction to Corporate LawMajor 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)


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Introduction to Corporate LawIntroduction to Corporate LawExamples of International Corporate Collapses


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Law Making in PakistanLaw 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/Senateunder 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


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Judicial System in PakistanJudicial System in PakistanSupreme Court of Pakistan

High Courts in 4 Provinces

+

High Court in Islamabad

Special Courts District &Session Courts

(Banking Courts, Corporate and

Commercial Courts etc.) Civil Courts & Magistrate Courts


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Business Organisations in PakistanBusiness Organisations in Pakistan


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Business Organisations in PakistanBusiness Organisations in PakistanKinds 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)


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Regulation of Business Organisations in PakistanRegulation 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]


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End of Week #1 Lecture Presentation

Thanks for Patience

week 1 - introduction to corporate law

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