Corporate Laws

Q. What would be the status of a contract made by a company before the date at which it becomes entitled to commence its business?

Ans: Status of Contract before issue of certificate of Commencement of Business:

The status of contract made before issue of certificate of commencement of business, would be provisional and not be binding on the company. On the date the certificate issued, the contract would become binding.

Q. Section 4 of the Companies Ordinance, 1984 provides that the Ordinance does not apply to certain corporations. Specify them.

Ans: Ordinance not to apply to certain corporations:

The ordinance does not apply to the following corporations in terms of Section:4

1.      A trading corporation owned or controlled by a Province and carrying on business only in that Province.

2.      A corporative society.

3.      A university.

Q. What alternatives are available for presiding a general meeting when chairman of the board of directors is unwilling to act as chairman due to his personal reasons?

Ans: Alternatives available for presiding a general meeting in the absence of the chairman:

Any of the directors present can be elected as the chairman of the meeting, and if none of the directors is present shall choose one of their members as chairman.