Accounting

COMPANY LIMITED BY GUARANTEE. SECTION 15(2) (b)
It is the company in which the liability of its members is limited by the memorandum of association such amount as the members may respectively undertake to contribute to the assets of the company in event of its being wound up. This type of company is formed mostly when work is of non-profit nature.
UNLIMITED COMPANY:
An unlimited company is that in which the liability of its members is unlimited. Every member of company is personally liable to the full extent of his personal assets for all the debts of the company lile he was a member. The unlimited companies due to great risk do not exist here.
ASSOCIATION NOT FOR PROFIT:
Association not for profit is registered under Section 42 of the Companies Ordinance. It enjoys all privileges of a limited company without using the word limited or private limited. This association is ly formed for the promotion of commerce, art, religion, charity etc. The Federal Government grants licence for the association.
)TE:
In this chapter, the whole discussion is about the accounting of Public Limited Companies. IMATION OF A PUBLIC LIMITED COMPANY:
The establishment of Public Limited Company is not an easy job. A number of steps need to be for the formation of a public company. However, these are split up into three stages (1) Promotion (2) joration and (3) Commencement of business.
PROMOTION OF A COMPANY:
The important steps in the promotion of a company are (1) Discovery of business idea (2) vestigation of the business project (3) Verification of the results of investigation. (4) Chalking out a lite course of action for establishing a company (5) Financing of the business,
INCORPORATION OF A COMPANY:
The promoters have to prepare and file a number of documents with the registrar for the ' corporation of a company. These documents are as under:
The memorandum of association.
The articles of association.
Notice of the address at which the registered office of the company will be situated.
A statutory declaration by the secretary or a chartered accountant that all the provisions of tlieCompanies Ordinance with regard to registration have been fulfilled.
Original copies of the receipted challans in respect of payment of duty on share capital andthe prescribed filing fee.
The above documents when submitted must be accompanied with requisite filing fee. The registrar ceipt of all the documents will scrutinize them If he is satisfied that the requirements of law have been met with, he will register the company on the Register of Companies and issue a certificate of jration. The certificate of incorporation is a proof of the fact that all the requirements of the u'es Ordinance have been complied with.