Table of Contents

SECP ----------------------------------------------------------------------

Executive summary -----------------------------------------------------------

Company ----------------------------------------------------------------------

Types of Companies ---------------------------------------------------------

Statutory Company -----------------------------------------------------------

Chartered company ---------------------------------------------------------

Government Company ---------------------------------------------------------

Registered companies ---------------------------------------------------------

Company limited by shares -------------------------------------------------

Private limited company ------------------------------------------------------

Public listed company ---------------------------------------------------------

Company limited by Guarantee ---------------------------------------------

 SECP
Securities and Exchange Commission of Pakistan

The Securities and Exchange Commission of Pakistan (SECP) was set up in pursuance of the
Securities and Exchange Commission of Pakistan Act, 1997 and became operational on January
1, 1999.

The SECP is divided into the following divisions:

 Company Law Division

 Securities Market Division
 Specialized Companies Division
 Insurance Division
 Prosecution and Legal Affairs Division
 Support Services Division

LOCATION:
The SECP's head office is located in the NIC Building on Jinnah Avenue in the Blue
area of Islamabad Pakistan's federal capital. It also has regional offices called company
registration offices (CROs) in Islamabad ,karachi, Lahore , multan,
peshawar, faislabad, quetta, and Gilgit baltistan
EXECUTIVE SUMMARY

A company is an association or collection of individuals, whether natural persons, legal persons,

or a mixture of both. Company members share a common purpose and unite in order to focus
their various talents and organize their collectively available skills or resources to achieve
specific, declared goals.

The companies which are formed under special statutes are termed as statutory companies. These
are governed by the Acts or Ordinance through which these are created. Example of such type of
companies is the state Bank of Pakistan, small Business Finance Corporation, Investment
Corporation of Pakistan, etc. A statutory corporation is a corporation created by statute

Chartered companies are formed by means of a special charter granted by the head of state, or
King or Queen of the Crown. Normally these enjoy certain exclusive rights and privileges on
other associations of persons. A government company is a company of which not less than 51%
(fifty-one percent) of the paid up capital is held by the Government. A company which is a
subsidiary of a Government company automatically becomes a Government company. The
defining characteristics are that they have a distinct legal form and they are established to operate
in commercial affairs.

A company other than a company registered as private limited company is called public limited
company. Companies’ ordinance defined certain conditions for public limited companies which
are as under:

A company registered as public limited company does not impose any restrictions on the number
of members that the company can have.

A Public company is a company which does not impose any restriction on the right of transfer of
its shares. Listed company is the company which has its shares listed on any stock exchange.
Unlisted Public companies are those companies whose shares are not listed on any stock
exchange of the country and these types of companies are not allowed to trade their shares
through stock exchange.

It means a company whose memorandum of association limited the liabilities of its members to
the amount as the members may respectively under take to contribute to the assets of the
company in the event of its winding up. This company may or not have a share capital.

In a company limited by guarantee, there are no shares - hence there are no shareholders. Instead,
the company will have 'members'. The members of a company limited by guarantee are bound by
a guarantee in the company's articles of association, which requires them to pay the company's
debts up to a fixed sum. It is a company which is registered without limited the liability of the
members to the extent of the value of the shares held by them. Now-a-days such type of
companies is not found in Pakistan.

COMAPANY
A company is an association or collection of individuals, whether natural persons, legal persons,
or a mixture of both. Company members share a common purpose and unite in order to focus
their various talents and organize their collectively available skills or resources to achieve
specific, declared goals.

TYPES OF COMPANIES
Following are the types of companies:

1. Statutory Company

2. Chartered Company

3. Government Company

4. Single Member Company

5. Registered Company

STATUTORY COMPANY:
The companies which are formed under special statutes are termed as statutory companies.
These are governed by the Acts or Ordinance through which these are created. Example of such
type of companies is the state Bank of Pakistan, small Business Finance corporation, investment
Corporation of Pakistan, etc. A statutory corporation is a corporation created by statute. Their
precise nature varies by jurisdiction thus they might be ordinary companies/corporations owned
by a government with or without other shareholders, or they might be a body without
shareholders which is controlled by national or sub-national government to the (in some cases
minimal) extent provided for in the creating legislation.

CHARTERED COMPANY:
Chartered companies are formed by means of a special charter granted by the head of state, or
King or Queen of the Crown. Normally these enjoy certain exclusive rights and privileges on
other associations of persons. The East India Company and the Chartered Bank of England are
examples of such type of companies. A chartered company is an association formed by investors
or shareholders for the purpose of trade, exploration and colonization. Chartered companies were
usually formed, incorporated and legitimized under a royal or, in republics, an equivalent
government charter. This document set out the terms under which the company could trade;
defined its boundaries of influence, and described its rights and responsibilities.

GOVERNMENT COMPANY:
A government company is a company of which not less than 51% (fifty-one percent) of the paid
up capital is held by the Government. A company which is a subsidiary of a Government
company automatically becomes a Government company. government-owned corporation, state-
owned company, state-owned enterprise, state-owned entity, state enterprise, publicly owned
corporation, government business enterprise, commercial government agency, public sector
undertaking is a legal entity that undertakes commercial activities on behalf of an owner
government. Their legal status varies from being a part of government to stock companies with a
state as a regular stockholder. There is no standard definition of a government-owned
corporation (GOC) or state-owned enterprise (SOE), although the two terms can be used
interchangeably. The defining characteristics are that they have a distinct legal form and they are
established to operate in commercial affairs. While they may also have public policy objectives,
GOCs should be differentiated from other forms of government agencies or state entities
established to pursue purely non-financial objectives Government-owned corporations are
common with natural monopolies and infrastructure such as railways and telecommunications,
strategic goods and services (mail, weapons), natural resources and energy, politically sensitive
business, broadcasting, demerit goods (alcohol) and merit goods (healthcare). GOCs can be fully
owned or partially owned by government. As a definitional issue, it is difficult to determine
categorically what level of state ownership would qualify an entity to be considered as "state-
owned", since governments can also own regular stock, without implying any special
interference.

SINGLE MEMBER COMPANY

Single member company (SMC) has been introduced through the companies Ordinance
2002.The Single Member Company shall have all the rules and rights and privileges as well as
obligations and liabilities as other private company has.

REGISTERED COMPANY
Registered companies are those companies which are registered in Pakistan under the
Companies Ordinance, 1984 or any previous Companies Act or Ordinance. A corporation that
has filed a registration statement with the Security Exchange Commission prior to releasing a
new stock issue.

Registered companies are further classified into the following three broad classifications:

Company Limited by Shares

Companies Limited by Guarantee

Unlimited Company

COMPANY LIMITED BY SHARES

It means a company whose memorandum of association limited the liabilities of its members to
the amount unpaid, if any, on the shares held by them in the capital of the company.

In such a company, the shareholders' obligation is to pay the company for the shares they have
taken in it. The individual puts money into the company, and in return the company gives it a
percentage of ownership, in the form of shares (how much of a company the individual in
question owns depends on how many shares he/she has in comparison with the other people, if
any, who own shares in that company). The price of an individual share can be any value -
usually, though, the 'nominal' value of a single share will be £1. (It is also common for shares to
be bought and sold at their 'market value' - i.e. what an investor deems them to be worth in
reality - but this is outside the scope of this website.)

Once the shares are fully paid for (and this would usually be the case with a private limited
company) no further money is payable by the shareholders. Their liability to the company is
satisfied. If the shares are issued unpaid (which can sometimes be the case for a variety of
reasons), then if the company is wound up it can call on the shareholders who have not paid for
their shares to do so. Either way, the liability of the shareholder is limited to the amount they
have paid, or they are due to pay, to provide adequate consideration for the shares that they own.
Company limited by share includes two categories:

Private Limited Company

Public limited Company

PRIVATE LIMITED COMPANY

As per the provisions of companies’ ordinance, 1984 private limited companies are defined as: A
private limited company is the company which restricts the right to the transfer the shares if any.
Private Limited Company restricts the maximum number of members to be fifty.

Private Limited Company prohibits any kind of invitation to general public to subscribe for its
any shares and pay any amount to the company in that respect.

PUBLIC COMPANY
A company other than a company registered as private limited company is called public limited
company. Companies’ ordinance defined certain conditions for public limited companies which
are as under: A company registered as public limited company does not impose any restrictions
on the number of members that the company can have. A Public company is a company which
does not impose any restriction on the right of transfer of its shares. Public company does not
impose any restriction on the invitation to general public to subscribe for its shares and pay any
amount in respect of that subscription. A public company can be further classified into two
categories:

listed Company

Unlisted company
 Listed Companies
Listed company is the company which has its shares listed on any stock exchange. In Pakistan at
the moment companies are listed on three stock exchanges of the country namely Karachi Stock
Exchange, Lahore Stock Exchange and Islamabad Stock Exchange.

Unlisted Company
Unlisted Public companies are those companies whose shares are not listed on any stock
exchange of the country and these type of companies are not allowed to trade their shares
through stock exchange.

COMPANY LIMITED BY GUARANTEE

It means a company whose memorandum of association limited the liabilities of its members to
the amount as the members may respectively under take to contribute to the assets of the
company in the event of its winding up. This company may or not have a share capital.

Means a company having the liability of its members limited by the memorandum to such
amount as the members may respectively thereby undertake to contribute to the assets of the
company in the event of its winding up.

In a company limited by guarantee, there are no shares - hence there are no shareholders. Instead,
the company will have 'members'. The members of a company limited by guarantee are bound by
a guarantee in the company's articles of association, which requires them to pay the company's
debts up to a fixed sum.

UNLIMITED COMPANY
It is a company which is registered without limited the liability of the members to the extent of
the value of the shares held by them. Now-a-days such type of companies is not found in
Pakistan.
 TYPES OF CAPITAL

The term "capital" can refer to a number of different concepts in the business world. While
most people think of financial capital, or the money a company uses to fund operations, human
capital and social capital are both important contributors to a company's overall financial
health.

KEY TAKEAWAYS

 Capital refers to anything that can be used for productive purposes by a firm or
individual.
 Economic or financial capital entail monetary funds and investments like equity, debt, or
real estate.
 Human capital and social capital augment the purely economic rationale behind capital
and together better explain how business and economic growth really work.

Human capital and social capital augment the purely economic rationale behind capital and
together better explain how business and economic growth really worTABLE OF CONTENTS

 1.Financial (Economic) Capital

 2.Human Capital
 3.Social Capital
 Capital and Capitalism

1. Financial (Economic) Capital

Financial capital is necessary in order to get a business off the ground. This type of capital
comes from two sources: debt and equity. Debt capital refers to borrowed funds that must be
repaid at a later date, usually with interest.

Common types of debt capital are:

 bank loans
 personal loans
 overdraft agreements
  credit card debt

Equity capital refers to funds generated by the sale of stock, either common or preferred
shares. While these funds need not be repaid, investors expect a certain rate of return.

Economic capital may also take the form of cash or other assets like real estate, commodities,
equipment, vehicles, and so forth which may be disposed of for cash in the market.

2. Human Capital
Human capital is a much less tangible concept, but its contribution to a company's success is no
less important. Human capital refers to the skills and abilities a company's employees bring to
the operation.

Though it's hard to quantify human capital in dollars, most companies know that employee
performance can be greatly enhanced by continuing education classes, professional
development seminars and healthy-living programs. Many businesses choose to invest in the
happiness and well-being of their employees because this investment indirectly benefits
the bottom line by cultivating a happier, more efficient workforce.

3. Social Capital
Social capital is an even more intangible asset, referring to the relationships people have to
each other, and the desire they have to do things for and with others within their social
networks. People tend to do things to help and encourage those in their same social network,
creating a cycle of mutually beneficial reciprocity. In an individual's social network, social capital
is the value of the content of the relational ties between people and not a product of the
members of the network in and of itself. For instance, if you have a wealthy uncle in your
network, knowing he could lend you money in a pinch would be to leverage that relationship's
social capital.

In business, a person with high social capital knows many influential people within his industry
and may have more opportunities for advancement and development than someone whose
social circle is small. People with high social capital may also have an easier time accomplishing
things, both personally and professionally, because they can draw on the strengths and
resources of others within their networks.

Related to social capital are other types that have been identified by sociologists and
anthropologists such as: symbolic capital - for instance, the honor and status earned through
credentialing or promotion; and cultural capital - for instance, the capacity to recognize and
appreciate high-class items like art or fine food and distinguish that from more middle-brow
consumption.
4.Capital and Capitalism

While we have listed several general forms of capital here, it says very little about what the
economic system of capitalism actually is. In its most basic form, capitalism requires the
separation of capital from the labor that uses it in the production process. For instance, a
business owner and his investors (which constitute the capitalists) jointly own the entirety of
the company - its assets, property, equipment, raw materials, and final product for sale. As
such, capitalists are also entitled to 100% of the profits that accrue from selling goods in the
market.

Capitalists take their capital (factories, money, tools, vehicles, etc.) and hire workers, known
generally as labor, to use those tools and raw materials to assemble and finish a final product,
in return for a wage. Labor does not own any of the tools they use to make the equipment,
none of the raw materials that go into it, and none of the final product - meaning they are also
not entitled to any of the profits from the sale of the goods they make. All the get is their wage.

In reality, a modern business is assembled from owners and investors but also a layer of
managers (who are well-paid labor) and the workers they supervise. All along the way,
economic capital, human capital, and social capital are leveraged to increase profits and
productivity.

TYPES OF SHARES

What types of share can a company have?

SHARE ISSUANCE
SHARE REGISTRAR AND BALLOTERS

Share registrars and balloters are the regulated securities activities under the Securities Act,
2015. The role of Share Registrars and Ballotters is very important, as they are involved in the
issuance and transfer of shares, maintenance of share registers, issuance of dividend warrants
and bonus shares on behalf of the issuer. Ballotters role is also of important as they have to
conduct fair and transparent balloting for the investors in Initial Public Offering (“IPO”). SECP
promulgated the Share Registrars and Balloters Regulations, 2017 (SRB Regulations) on January
11, 2017. All the share registrars and balloters are required to be licensed with SECP for
providing business as Share registrar and Balloter.

SRB Regulations prescribes the eligibility conditions, licensing procedure and duties and
responsibilities of Share Registrars and Ballotters

Most companies only ever have one type of share (or class of share). The shares are commonly
called ordinary shares and will be the ones the company was incorporated with. The typical
rights that go with ordinary shares (and the rights conferred by the Model Articles for private
limited companies) are:

Each share is entitled to one vote in any circumstances. Each share has equal rights to
dividends. Each share is entitled to participate in a distribution arising from a winding up of
the company.

However, some companies choose to have two or more different types of share, sometimes
referred to as ‘alphabet shares’. It’s relatively straightforward to create a new share
class. Indeed, if the shareholders consent then a company can have as many different share
classes as it likes, each representing a different type of share. The rights that go with different
classes of shares, which are at least in part described in the prescribed particulars for the class,
can be whatever the shareholders are willing to accept.

Equally, the shareholders’ rights for different classes of shares do not have to be different. In
fact, different share classes can have identical rights to other classes. In some companies,
‘alphabet shares’ (“Ordinary A Shares”, “Ordinary B Shares” etc) with identical rights are issued
to different shareholders.

Creating different share classes in this way might allow dividends to be paid to some
shareholders but not to others, but the company should be careful to ensure that any such
strategy does not constitute a breach of HMRC rules and guidelines.

However, in general, if a company has more than one type of share the main differences
between them will be found in one or more of the following areas:

Entitlement to dividends
Shares may have the right to normal dividends, preferential dividends (that is, the right to be
paid a dividend before other share classes or at a certain fixed level), a dividend only in certain
circumstances or no dividends at all.
 Entitlement to capital on winding up
If the company is dissolved, any assets left after the company’s debts are paid can be
distributed to shareholders. However, different share classes may have different rights to
capital distribution – with some shares ranking first and others only paid if sufficient assets
remain after others have received their full distribution of capital.

Voting rights
Usually, this is as simple as shares either carrying voting rights or not. However, weighted or
tiered voting rights are also possible – so, for example, shares may carry extra voting rights in
certain circumstances or on certain important matters affecting the company.

While there are a few conventions which are best followed to avoid any misunderstandings a
company can call shares by whatever name it likes. That said, you cannot simply assume that
shares called ordinary in one company will have exactly the same rights as the ordinary shares
in another company. Indeed the only way to ascertain what rights go with a particular share
class is to read the articles of association of that company.
The reasons why a company would want to have different share classes will generally fall into
one of the below categories:

 To attract investment
 To push dividend income in a certain direction
 To remove (or enhance) voting powers of certain individuals
 To motivate staff (to remain as employees)
Provided it follows due process, and subject to any restrictions in its articles of association, a
company can create a new share class at any time. When it needs a new share class a company
can choose to either create a new share class in addition to an existing class or convert an
existing share class into one or more new share classes.
It is the articles of association which set out the division of shares into their different
classes. The articles will also detail the precise rights attaching to each class. Most classes of
share will fall into one of the below categories of types of share:
Ordinary shares

These carry no special rights or restrictions. They rank after preference shares as regards
dividends and return of capital but carry voting rights (usually one vote per share) not normally
given to holders of preference shares (unless their preferential dividend is in arrears).
Some companies create more than one class of ordinary shares – e.g. “A Ordinary Shares”, “B
Ordinary shares” etc. This gives flexibility for different dividends to be paid to different
shareholders or, for example, for pre-emption rights to apply to some shares but not others.
In some cases, different classes of ordinary share may be of different nominal values – for
example, there may be £1 Ordinary shares and £0.01 Ordinary shares. If each share had the
right to one vote (and assuming the shares were issued at their nominal value), then the £0.01
Ordinary shareholders would get 100 votes per £1 paid while the £1 Ordinary shareholders
would get 1 vote for paying the same amount.

2Deferred ordinary shares

A company can issue shares which will not pay a dividend until all other classes of shares have
received a minimum dividend. Thereafter they will usually be fully participating. On a winding
up they will only receive something once every other entitlement has been met.

3Non-voting ordinary shares

Voting rights on ordinary shares may be restricted in some way – e.g. they only carry voting
rights if certain conditions are met. Alternatively, they may carry no voting rights at all. They
may also preclude the shareholder even attending a General Meeting. In all other respects they
will have the same rights as ordinary shares.

4Redeemable shares

The terms of redeemable shares give the company the option to buy them back in the future;
occasionally, the shareholder may (also) have the option to sell them back to the company,
although that’s much less common.
The option may arise at or after a specific date, between two dates or be effective at any time
the shares are in issue. The redemption price is usually the same as the issue price, but can be
set differently. A company can only redeem shares out of profits or the proceeds of a new share
issue, which may restrict its ability to redeem shares even if the directors would like to exercise
the option.
If a company chooses to have redeemable shares, it must also have non-redeemable shares in
issue. At no point can all of its share capital be made up of redeemable shares.
We’ve written a dedicated article covering the features and processes related to redeemable
shares.
5Preference shares

These shares are called preference or preferred since they have a right to receive a fixed
amount of dividend every year. This is received ahead of ordinary shareholders. The amount
of the dividend is usually expressed as a percentage of the nominal value. So, a £1, 5%
preference share will pay an annual dividend of 5p. The full entitlement will be paid every year
unless the distributable reserves are insufficient to pay all or even some of it. On a winding up,
the holders of preference shares are usually entitled to any arrears of dividends and their
capital ahead of ordinary shareholders. Preference shares are usually non-voting (or only have
a vote only when their dividend is in arrears).
In another article, you can read in more detail about preference shares.

6Cumulative preference shares

If the dividend is missed or not paid in full then the shortfall will be made good when the
company next has sufficient distributable reserves. It follows that ordinary shareholders will
not receive any dividends until all the arrears on cumulative preference shares have been paid.
By default, preference shares are cumulative but many companies also issue non-cumulative
preference shares.

7Redeemable preference shares

Redeemable preference shares combine the features of preference shares and redeemable
shares. The shareholder therefore benefits from the preferential right to dividends (which may
be cumulative or non-cumulative) while the company retains the ability to redeem the shares
on pre-agreed terms in the future.

Most companies start by just having one type of shares in the form of an ordinary share
class. These will typically carry equal rights to voting, capital and dividends. The issue of new
shares after company incorporation will generally be allotments of these ordinary shares,
unless circumstances suggest a need for flexibility or varied rights.
Just as a company may issue shares in multiple share classes, there’s also nothing to stop a
shareholder holding more than one class of share in the same company and thereby benefiting
from the differing rights (e.g. voting or dividend entitlement) that each class offers).
While we have listed several general forms of capital here, it says very little about what the
economic system of capitalism actually is. In its most basic form, capitalism requires the
separation of capital from the labor that uses it in the production process. For instance, a
business owner and his investors (which constitute the capitalists) jointly own the entirety of
the company - its assets, property, equipment, raw materials, and final product for sale. As
such, capitalists are also entitled to 100% of the profits that accrue from selling goods in the
market.

Capitalists take their capital (factories, money, tools, vehicles, etc.) and hire workers, known
generally as labor, to use those tools and raw materials to assemble and finish a final product,
in return for a wage. Labor does not own any of the tools they use to make the equipment,
none of the raw materials that go into it, and none of the final product - meaning they are also
not entitled to any of the profits from the sale of the goods they make. All the get is their wage.

In reality, a modern business is assembled from owners and investors but also a layer of
managers (who are well-paid labor) and the workers they supervise. All along the way,
economic capital, human capital, and social capital.

What Is an Organizational Structure?

An organizational structure is a system that outlines how certain activities are
directed in order to achieve the goals of an organization. These activities can
include rules, roles, and responsibilities.

The organizational structure also determines how information flows between

levels within the company. For example, in a centralized structure, decisions flow
from the top down, while in a decentralized structure, decision-making power is
distributed among various levels of the organization.

Having an organizational structure in place allows companies to remain efficient

and focused.

Understanding Organizational Structures

Businesses of all shapes and sizes use organizational structures heavily. They
define a specific hierarchy within an organization. A successful organizational
structure defines each employee's job and how it fits within the overall system.
Put simply, the organizational structure lays out who does what so the company
can meet its objectives.

This structuring provides a company with a visual representation of how it is

shaped and how it can best move forward in achieving its goals. Organizational
structures are normally illustrated in some sort of chart or diagram like a pyramid,
where the most powerful members of the organization sit at the top, while those
with the least amount are at the bottom.

Not having a formal structure in place may prove difficult for certain
organizations. For instance, employees may have difficulty knowing to whom
they should report. That can lead to uncertainty as to who is responsible for what
in the organization.

Having a structure in place can help improve efficiency and provide clarity for
everyone at every level. That also means each and every department can be
more productive, as they are likely to be more focused on energy and time.

Centralized Versus Decentralized Organizational Structures

An organizational structure is either centralized or decentralized. Traditionally,

organizations have been structured with centralized leadership and a defined
chain of command. The military is an organization famous for its highly
centralized structure, with a long and specific hierarchy of superiors and
subordinates.

There has been a rise in decentralized organizations, as is the case with many
technology startups. This allows companies to remain fast, agile, and adaptable,
with almost every employee receiving a high level of personal agency.

Types of Organizational Structures

Four types of common organizational structures are implemented in the real

world. The first and most common is a functional structure. This is also referred
to as a bureaucratic organizational structure and breaks up a company based on
the specialization of its workforce. Most small-to-medium sized businesses
implement a functional structure. Dividing the firm into departments consisting of
marketing, sales, and operations is the act of using a bureaucratic organizational
structure.

The second type is common among large companies with many business units.
Called the divisional or multidivisional structure, a company that uses this method
structures its leadership team based on the products, projects, or subsidiaries
they operate. A good example of this structure is Johnson & Johnson. With
thousands of products and lines of business, the company structures itself so
each business unit operates as its own company with its own president.

Flatarchy, a newer structure, is the third type and is used among many startups.
As the name alludes, it flattens the hierarchy and chain of command and gives its
employees a lot of autonomy. Companies that use this type of structure have a
high speed of implementation.

The fourth and final organizational structure is a matrix structure. It is also the
most confusing and the least used. This structure matrixes employees across
different superiors, divisions, or departments. An employee working for a
matrixed company, for example, may have duties in both sales and customer
service.

Additional Benefits to Having an Organizational Structure

Putting an organizational structure in place can be very beneficial to a

company.The structure not only defines a company's hierarchy, but it also allows
the firm to lay out the pay structure for its employees. By putting the
organizational structure in place, the firm can decide salary grades and ranges
for each position.

KEY TAKEAWAYS

 An organizational structure outlines how certain activities are directed to

achieve the goals of an organization.
 Successful organizational structures define each employee's job and how it
fits within the overall system.
 A centralized structure has a defined chain of command, while
decentralized structures give almost every employee receiving a high level
of personal agency.
The structure also makes operations more efficient and much more effective. By
separating employees and functions into different departments, the company can
perform different operations at once seamlessly.

7 important functions of an
Organisation
1. To define the role of the individual:
An individual employed in an enterprise must know his role, position and
relationship with other personnel in his department and with others.
Organisation becomes necessary so that the persons involved in the enterprise
can identify themselves in the enterprise. It is through the organisation that
one can know his position and role in the unit. He can relate his position with
other members of the enterprise.

2. Determination of authority:
The assignment of a certain role proposes the granting of certain authority so
that performance can be possible. Organisation is necessary to define the
authority i.e., the rights and powers of men in different positions which
would help them to discharge their assigned roles.

3. Fixation of responsibility:
Each individual is assigned a certain duty organisational structure defines
what performance is expected of a member of the unit of the department of
the enterprise. Absence or faulty determination of responsibility will lead to
irresponsible functions, behaviour and attitudes.

4. Specialisation:
Modern production and management techniques are based on the idea of
specialization which means the performance of different parts of a job by
persons specifically suited for them.

Organisation is basically required to promote specialization. Efficient and

smooth functioning is possible when different elements of a job are
performed by experts and their efforts are pooled to attain the desired and
product.

5. Coordination:
Since the pattern of managerial operations is to be based on die division’ of
labour, there arises the need of coordinating the activities of various
individuals or that of different departments. They perform diverse, activities
and these have to be woven into the main fabric.

6. Proper utilisation of human resources:

The most important thing for enterprises is to make the best possible use of
its human resources. There must not be wastage or misapplication of human
efforts. This is of great importance for economy as well as for the
achievement of objectives.

It can be possible only by suitable organisation, which avoid all bottlenecks-

chances of work being held up and allow smooth flow of performances.

7. Efficient functioning:
Efficiency is to be the watchword of an enterprise, all the factors mentioned
above will have a great impact on the efficient functioning of the enterprise,
and Organisation avoids all duplication in jobs, overlapping and wastage. It
promotes speedy, smooth and efficient functioning of the enterprise.

STRUCTURE OF SECP

The SECP is a collegiate body with collective responsibility. The operational and
executive authority of the SECP is vested in the Chairman who is the SECP's chief
executive officer (CEO). At present, he is assisted by four Commissioners to oversee the
working of various opera.

MAIN FUNCTION OF SECP

The Securities and Exchange Commission of Pakistan (SECP) is the financial regulatory
agency in Pakistan whose objective is to develop a modern and efficient corporate sector and a
capital market based on sound authority principles, in order to encourage investment and foster
economic growth and prosperity in Pakistan.

THE INCORPORATION PROCESS IN SECP

STEP 1: COMPANY NAME RESERVATION First use SECP's Company Name Search
to check if your proposed name is available
STEP 2: DOCUMENTS OF INCORPORATION
STEP 3: DIGITAL SIGNATURES
STEP 4: FEE OF INCORPORATION/FILING. ... STEP 5: CERTIFICATE OF
INCORPORATION.
STEP 5: CERTIFICATE OF INCORPORATION.

HOW TO REGISTER A COMPANY IN PAKISTAN THROUGH SECP

Step 1: Approval of Company Name. This is the first step of company registration in
Pakistan is choosing the company's name
Step 2: Submission of Documents
Step 3: Certificate of Incorporation
Step 4: Deposit of Shares
Step 5: Registration of Income, Sales, and Professional Taxes.

Securities And Exchange Policy Board Approves

Creation Of Adjudication Division In SECP
The Securities and Exchange Policy Board met on Saturday under the
Chairmanship of Professor Khalid Mirza, Chairman

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 28th Sep, 2019 ) :The
Securities and Exchange Policy board met on Saturday under the Chairmanship
of Professor Khalid Mirza, Chairman SECP. The Board approved the setting up
of a centralized adjudication division in the Commission. This division will be the
quasi judicial arm of the Commission and be entrusted the responsibility for its
entire adjudication work pertaining all regulated entities and persons instead of
the existing practice of adjudication being carried out separately by various
departments/divisions within the Commission.

The centralization of adjudication would likely enhance the effectiveness of the

Commission, ensure fair and consistent decisions, and minimize any creeping
risk of arbitrariness in the discharge of its judicial function.

The Policy Board also took up the matter of S.R.O. 1048 (I)/2019
dated September 11, 2019 requiring companies to file a tax compliance
certificate. The Board considered this order to be ultra vires and beyond the
jurisdiction of the SECP and has directed the Commission to take steps for its
withdrawal after taking legal advice.
Amongst other decisions, SECP's Financial Statements, for the year ended June,
30, 2019 were presented to the Policy Board and approved.
The Commission's Annual Report will be finalized after the Members of the Policy
Board have had a chance to review it and provide their observations.

The Board took note of the following and gave appropriate directions to the
Commission seeking to rectify the situation: Unwarranted, and possibly illegal,
intervention by outside forces and harassment as well intimidation by staff which
had debilitated the Commission, withdrawal of cases wrongfully referred to law
enforcement agencies and repatriation of staff seconded to these agencies as
directed by the Policy Board earlier had not been done,There were several
stock market related governance issues that need to be redressed and the need
for the Commission to objectively determine - through a departmental inquiry in
each case the factual position regarding the charges being faced by certain staff
members that had been implicated, or were likely to be implicated, in legal cases;
and if so deemed appropriate/necessary for the Commission to stand up and
defend these staff members in all forums.
The Securities and Exchange Policy Board, in pursuance of Section 12 of the Act
1997, comprises ex-officio members of the Ministries of Finance, Commerce, and
Law, SBP, SECP and persons of eminence from the private sector.

A. General Information

1. Registration: The headhunting/executive search service provider must be registered and must have
valid NTN and GST number.

2. Duration: The duration of pre-qualification shall be three years subject to satisfactory performance of
the pre-qualified service providers and pre-qualification ground remain unchanged.

3. Detail of Services Required: All services shall be provided by the recruitment agency solely in
connection with positions listed by the SECP (the listings shall be provided in writing by the SECP).
Agency shall not supply unsolicited resumes to SECP without any prior written consent.

4. Liaison: SECP shall nominate a coordinator to liaise with agency during the period of assignment to
ensure that the proposed time frame of the assignment is met. Similarly, the headhunting/executive
search service provider shall also nominate a representative to liaise with the SECP.
5. Advertisement: Headhunting/executive search service provider shall be provided with the job
title/designation, description and specifications for the advertisement without mentioning the name of
SECP.

6. Pre Recruitment information:

a) SECP will share the job description and specification in order to find closest match between the
candidate and the job. The information will cover such areas as required credentials, proposed
compensation package, location of job and highlights of the job.

b) Headhunting/executive search service provider shall be responsible for accurately and fully disclosing
all relevant information and CV of the concerning candidates to SECP within (15) fifteen days just after
the closing date of advertisement. The required fields of information (database format) shall be shared
with the headhunter in advance.

c) The headhunter shall send the list of total CVs received for the job post, the list of shortlisted CVs and
the list of not shortlisted CVs to the SECP with the reason.

d) The shortlisting, if desired so, may be done internally by the concerned department or HOD HRD; to
filter best-suited candidates meeting the departmental requirements.

8. Coordination with the potential candidate for interviews:

a) The recruitment agency shall be required to contact the candidates and inform them of their
interview schedule i.e. date, time, venue; as provided by the SECP via email. The SECP may contact the
candidates directly (if required). This exercise shall be done for panel interview and interview with the
Chairman.

b) The agency shall share the candidate’s availability status with the SECP via email.

9. Regrets to Candidates:

The SECP shall provide the agency with the list of unsuccessful candidates and the regrets shall be sent
to each of them via email/post. The regret status of the candidates will also be shared with the SECP by
the agency via email/post.

10. Post Recruitment Information (Reference Checks/Referrals of successfully selected candidates):

The recruitment agency shall obtain more specific and detailed information to facilitate selection
decision. The referrals from last two employers will be done for each successfully selected candidate.
The referrals must be conducted within the first 02-months/60 days of employment of the candidate.

11. Invoices and Payments:

a) Unless the parties agree otherwise in writing with respect to designated listed positions, the
recruitment agency will be paid for services only if SECP hires/appoints the candidate referred by the
agency.

b) The recruiting agency shall send an invoice against each appointed candidate and the payment will be
made as per agreement. c) In the event of a referral (from agency) if a candidate who is already known
to SECP by any means, shall promptly be notified to the agency in writing within 10 (Ten) working days.

12. Replacement:

In case the employment of the candidate placed by the agency is terminated within ninety (90) days
period from the date of joining or if the employee decides voluntary termination from the employment
of the SECP, within the probation period; the recruitment agency shall provide a replacement candidate
without additional cost only for that specified position within Ninety (90) days.

13. Termination of services:

a) Either party with one-month notice can invoke the termination of their agreement.

b) The agreement is the complete understanding of the parties, supersedes any prior oral or written
representations or understandings, and can only be modified by written agreement of the parties.

B. Specific Information (for evaluation of expressions of interest)

1) Past relevant experience of providing head hunting / executive search services to

 large, reputable and professional organization of similar nature including autonomous bodies, public
sector, financial institutions, corporate sector etc.

 Number of management cadre positions filled, level (senior, middle and lower management) for
which full recruitment cycle has been completed during the last 5 years.

2) CVs/Resumes of qualified professional staff dedicated for this project on full time basis.

3) Brief methodology / steps to be followed while performing the desired role for the SECP.
4) Name and brief detail of (if any) the specialized and licensed HRIS/Software support involved in the
screening, shortlisting, selection process of the candidates to be forwarded to SECP for further
evaluation.

5) Financial Standing supported by a reference letter from the bank.

6) Fee to be charged against each filled position.

C. Criteria for Pre-Qualification:

1) Service provider shall be shortlisted on the basis of above mentioned required information and as per
evaluation criteria prescribed in this document.

2) The Administration Department will notify each supplier or contractor submitting an application to
pre-qualify whether or not it has been pre-qualified and will make available to any person directly
involved in the pre-qualification process, upon request, the names of all suppliers or contractors who
have been pre-qualified.

3) Information relating to evaluation of proposals and recommendations concerning awards shall not be
disclosed to the prospective service provider who submitted the proposals or to other persons not
officially concerned with the process, until the successful service provider (s) have been notified that it
has been awarded the contract.

4) Any efforts by the applicants to influence the SECP, in the proposal evaluation, comparison or
contract award process including false and misleading required information submitted with the
application or in any clarification shall result in automatic disqualification.

5) Pre-qualified service provider will have to sign a legal agreement with the Commission initially for the
period of three year and extendable to any period mutually agreed. All the services shall be in
accordance with the agreement signed between the parties’ i.e., SECP and the service providers