This is our old Accountancy Forum which is now closed and is only available for reference purposes.
Visit the NEW ACCOUNTANCY FORUM at http://forum.accountancy.com.pk/ which is open for registration and discussions.

Accountancy Forum Forum Links » Home | Profile | Active Topics | Members | Search | FAQ
Username:
Password:
Save Password
Forgot your Password?

 All Forums
 The Profession
 Corporate Governance
 Appointment of Legal Advisor
 New Topic  Topic Locked
 Printer Friendly
Author Previous Topic Topic Next Topic  

ciapk
Partner

Pakistan
1760 Posts

Posted - May 06 2010 :  3:46:40 PM  Show Profile  Send ciapk a Yahoo! Message
ABC (Guarantee) Limited having paid-up share capital of Rs 50,000,000 appointed X and Co, chartered accountants (partner ship between Mr.N (CA) and MR. T Bar At Law) as its legal advisors on retainer-ship basis. You are the new compliance officer of the company, please discuss the legal stances in this regard.

awaisaftab
Partner

Pakistan
1109 Posts

Posted - May 11 2010 :  09:59:10 AM  Show Profile  Send awaisaftab a Yahoo! Message
According to section (3) Companies Legal Advisors Act, 1974 every company which has paid up capital of Rs. 500,000/- or more is required to appoint a legal advisor to advise such company in the performance of its functions and the discharge of its duties in accordance with laws.
Clause B of Section 2 defines the company (which is liable to appoint a Legal Advisor) in the following words:
"Company" means a company formed and registered under the Companies Act,
1913 (VII of 1913), but does not include a company the paid -up capital of which is
less than 1[five lakh rupees] or a company limited by guarantee or an association
registered under section 26 of that Act"

In my opinion this act is not applicable to AOP,compnies limited by Guarantees and compnies having paid up capital less than Rs. 500,000/-.
Go to Top of Page

ciapk
Partner

Pakistan
1760 Posts

Posted - May 12 2010 :  12:33:00 PM  Show Profile  Send ciapk a Yahoo! Message
Thanx Sir, here seems problem in appointment of a firm i think?
Go to Top of Page

awaisaftab
Partner

Pakistan
1109 Posts

Posted - May 12 2010 :  1:31:36 PM  Show Profile  Send awaisaftab a Yahoo! Message
I think firm in which an advocate and a professional accountant are partner can be also apointed as legal advisor because CMA's and CA's can also practice in corporate laws. Additionally a firm can also apointed as legal advisor under Companies Legal Advisors Act, 1974 although Companies Legal Advisors Act, 1974 is not applicable to Companies Limited by Gurantee.
Go to Top of Page

ciapk
Partner

Pakistan
1760 Posts

Posted - May 12 2010 :  2:53:12 PM  Show Profile  Send ciapk a Yahoo! Message
Okay, Thanx sir, agreed that no need to apply Act on Guarantee limted. but in case Act is applicable on a Co, then all partner of the firm should be advocate.
Go to Top of Page

noor4794
Unregistered Trainee

Pakistan
15 Posts

Posted - May 26 2010 :  8:55:41 PM  Show Profile
Its clear that a guarantee limited is not supposed to appoint a legal adviser.

But as for a company is concerned, Sec 3(2) of act states
"No person other than an advocate or a registered firm shall be appointed to be a Legal Adviser.

and clause D of section 2 defines
"Registered firm" means firm registered under the Partnership Act, 1932 (IX of 1932), ALL the partners of which are advocates.
Go to Top of Page

lawyersalman
Unregistered Trainee

Pakistan
1 Posts

Posted - Aug 06 2010 :  01:44:53 AM  Show Profile  Send lawyersalman a Yahoo! Message
I am a corporate lawyer from Islamabad Pakistan. If you need my services m available. My email is legal-experts@live.com and phone number is 0333-5339880. I offer free legal advice.
Go to Top of Page
  Previous Topic Topic Next Topic  
Advertisements


Follow Accountancy on TwitterFollow Accountancy on Facebook





 New Topic  Topic Locked
 Printer Friendly
Jump To:
Advertisement(s)
Accountancy Forum © 2002 - 2010 Accountancy Go To Top Of Page
This page was generated in 0.05 seconds. Snitz Forums 2000