[Pakistani]

Assignment 1 Solution
MGT211 Introduction to Business
Fall 2017


Solution:

1. I will accept the proposal due to the following reasons:

• It will be the major step required to expand my business.
  
• It will make it easy to get investments, selling share to collect large capital will also be a plus point.
  
• As a company, it will be easier to get Credit from banks and other financial institutions.
  
• Due to large capital, it will make it possible to hire Experts and make large scale production, hence larger profits. 
  
• It will also have a limited liability, long life and it will also be easy to exit from the company.
  

2. Following are some of the requirements that needs to be fulfilled to register a company in Pakistan.
We have to fill the following documents and submit in the registrar's office 

• • (a) Memorandum of Association A document indicating name, address, objects, authorized capital etc. of a company.
    
  • (b) Articles of Association A document containing laws and rules for internal control and management of a company
    
  • © List of Directors A list of the names, occupations, addresses, along with the declaration of directors.
    
  • (d) Written Consent of Directors A written consent showing their willingness to act at directors, to be sent to the Registrar
    
  • (e) Declaration of Qualifying Shares A declaration certificate showing that the directors have taken up qualifying shares and have paid up the money or pay it in near future to the registrar.
    
  • (f) Prospectus Promoters have to file a prospectus with the registrar.
    
  • (g) Statutory Declaration A statutory declaration is to be sent to the Registrar that all legal formalities have been completed.
    

After that the registration fee has to be paid and then the certificate of commencement is issued by the registrar after the registrar verifies all documents are fulfilling the required criteria.


NOTE: Do not copy/paste this solution, only get the idea, read out Lecture 5 and 6 from MGT211 handouts and write your answers yourself.