Corporate Laws in Pakistan – Companies Ordinance 1984
Today the corporate sector of Pakistan is governed by Companies Ordinance of 1984. The history of corporate law in this region is much older than the history of Pakistan. Great Britain passed Companies Act in 1908 which introduced several important provisions relating to company administrations. In 1913 after five years, Companies Act of 1913 was passed in British India. Pakistan came into being on 14 August 1947 and adopted the companies Act of 1913. In 1959 a company Law Commission was set up to make laws in accordance with modern times. Report of Company Law Commission of Pakistan was published in 1960. Finally the Companies Act of 1913 was replaced by the Companies Ordinance 1984.
Main Objectives of Companies Ordinance 1984:
- Its main purpose is to consolidate the law related with companies and certain other associations.
- Second purpose is to make sure the growth of Corporate Enterprises in Pakistan.
- To protect the investors and creditors. This is important because foreign investments require better protection and minimum risks and hence the objective of law is to save them.
- Promotion of investment and development of economy