Open AccessLANDSCAPE OF LAWS AND PROCEDURE OF WINDING UP OF COMPANIES IN PAKISTAN
Author(s) -
Rehmat Ali
Publication year - 2019
Publication title -
journal of law and social studies
Language(s) - English
Resource type - Journals
eISSN - 2709-6270
pISSN - 2709-2283
DOI - 10.52279/jlss.01.02.7789
Subject(s) - companies act , legislature , business , corporate law , law , process (computing) , accounting , law and economics , finance , corporate governance , economics , political science , computer science , operating system
Under the Company Law of Pakistan the winding up process through Court is regulated under sections 293, 305, 306 and of new Companies Act 2017. Nonetheless, the main focus of the courts is “to save the corporate sector” on the ground that it is “just and equitable” under Section 301 of Act, that a company should be put to winding up proceeding or not and there is no other mode to avoid the winding up of the companies like providing financial assistance. However, a radical change has been introduced in the world, in the field of windings up of the companies since the incorporation of the companies in Pakistan. Firstly we followed Companies Act 1913 and secondly a company ordinance 1984 promulgated and recently Companies’ Act 2017 has been introduced but no substantial change has been introduced in winding up proceeding of the companies. In the wake of the present mechanism and corporate legal framework in Pakistan, it is endeavored to research whether, in view of modern corporate cultures prevalent in the world, the Companies Act, 2017 provides adequate measures for the companies sought to be wound up in Pakistan. This article also aims, inter alia, to analyze the new techniques prevalent in various jurisdictions of the world and consider the aspects of legislative transplant of the same within the corporate legal system of Pakistan.