Commencement of Business by a Public Company

Commencement of Business by a humankind Comp whatsoever Restrictions on initiatement of origin. (1) A association shall not bugger off any business or exercise any borrowing powers unless (a) shares held topic to the payment of the whole gist thereof in cash demand been allotted to an amount not less in the whole than the stripped-down subscription b) every director of the guild has paid to the company full amount on each of the shares taken or contracted to be taken by him and for which he is liable to pay in cash (c) no m adepty is or may become liable to be repaid to applicants for any shares or debentures which build been offered for cosmos subscription by reason of any reverse to apply for or to obtain permission for the shares or debentures to be dealt in on any stock exchange d) there has been filed with the recorder a duly verified declaration by the chief executive or one of the directors and the secretary in the prescribed form that the aforesaid conditions have been complied with and the registrar has issued a certificate referred to in sub air division (2) and Companies Ordinance, 1984 101 (e) in the case of a company which has not issued a prospectus inviting the public to subscribe for its shares, there has been filed with the registrar a statement in blank space of prospectus. l) and after making such enquiries as he ay deem gibe to satisfy himself that all the requirements of this Ordinance have been complied with in respect of the starting line of business and matters precedent and incidental thereto, certify that the company is authorise to commence business, and that certificate shall be conclusive evidence that the company is so entitled Provided that, in the case of a company which has not issued a prospectus inviting the public to subscribe for its shares, the registrar shall not give such a certificate unless a statement in lieu of prospectus has been filed with him. 2) The registrar shall, on the filing of a duly ver ified declaration in accordance with the provisions of sub-section (3) Any contract made by a company before the date at which it is entitled to commence business shall be provisional only, and shall not be binding on the company until that date, and on that date it shall become binding. (4) Nothing in this section shall keep the simultaneous offer for subscription or allotment of any shares and debentures or the admit of any money payable on application for debentures. 5) If any company commences business or exercises borrowing powers in contravention of this section, every policeman and other(a) person who is responsible for the contravention shall, without prejudice to any other liability, be liable to a fine not exceeding one thousand rupees for every day during which the contravention continues. (6) Nothing in this section shall apply to a private company, or to a company circumscribed by guarantee and not having a share capital.