Companies Ordinance 1984

The corporate sector in Pakistan is governed by the Companies Ordinance 1984 which was promulgated on 8th October 1984 and repealed the Companies Act, 1913 .The Companies Ordinance 1984 is a broad piece of Pakistani legislation that, according to its own preamble, is “An Ordinance to consolidate and amend the law relating to companies and certain other associations”. It encompasses all legal rules and regulations for businesses registered with Security and Exchange Commission of Pakistan (SECP) and is enforced by that agency.

A company is a corporation. In the eye of law, it is a person which is different from its members. As company is person in the eye of law, it can own property. It can have rights and it can also be subject to the liabilities. A company is not agent of its members. The company cannot sue the members in case of liabilities and members of the company cannot sue it to enforce rights.

The Ordinance also provides legal protection and regulates the business community of Pakistan, with the SECP keeping a close check on financial and corporate entities to insure stakeholder’s interest.

The previous Companies Act 1913 was in practice for the same purposes.

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