MGT401-Financial Accounting II

Topic to be tested: 

·         Basic/Fundamental legal document of company

Learning objectives: 

·         To learn about one of the fundamental legal documents of a company required to be produced at the time of company registration in Pakistan, status of members’ liability and recognition of this status through the company’s name.

Discussion Question:

Professionals’ Group Associates (PGA) – a professional promoter has recently conducted a test for its yearly recruitment. In the test, one of the questions was about the name of a prime document providing the status of the “members’ liability” in any company working in Pakistan. This document along with other documents is required for the registration of a joint stock company in Pakistan.

You are required to:

1.       Mention the name of the document carrying the status of “members’ liability”;

2.       Briefly describe the true meaning of “member’s liability”; &

3.       How a company can be recognized as a limited liability company through its name?

Important Instructions:  1. Your discussion must be based on logical facts. 2. The GDB will remain open for 2 working days/ 48 hours. 3. Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course. 4. Obnoxious or ignoble answer should be strictly avoided. 5. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over. For Detailed Instructions please see the GDB Announcement