In Pakistan companies are registered under companies’ ordinance, 1984. As per the provisions of the companies’ ordinance, 1984 companies can be registered with unlimited liability of members. Further such companies may or may not have share capital.
Furthermore as per the provisions of companies ordinance, 1984 it is also possible that companies once registered with limited liability can be re-registered as companies with unlimited liability of the members of the company and vice versa. Companies’ ordinance, 1984 also states that if company registered with unlimited liability is re-registered as company with limited liability it shall not affect any debts, rights and liabilities contracted before such transformation.
Similarly companies ordianance, 1984 also provides that company can have directors with unlimited liability or in simpler words in case of any legal dispute even the personal assets of the directors can be held liable. However it is important that before any member of the company is recommended for appointment as director with unlimited liability such person shall be given notice of the fact that he will be appointed in the company as director with unlimited liability.
Similarly if the director with limited liability in the company is to be appointed as director with unlimited liability it is important that such director gives his consent to such appointment.
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