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  "title": "Companies (Appointment of Legal Advisers) Act, 1974",
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  "text": "Page 1 of 4 \r\n \r\n \r\n \r\n \r\n \r\nTHE COMPANIES (APPOINTMENT OF LEGAL ADVISERS) ACT, 1974 \r\n \r\n  \r\n \r\n \r\nCONTENTS \r\n \r\n \r\nSECTIONS:  \r\n1.  Short title, extent and commencement.   \r\n2.  Definitions.  \r\n3.  Appointment of Legal Adviser.  \r\n4.  Retainer.  \r\n5. Who may not be appointed Legal Adviser.  \r\n6.  Power to exempt.  \r\n7.  Penalty, adjudication of offences and appeal.  \r\n7A.  Penalty for false statement.  \r\n8.  Power to make rules.\r\nUpdated till 15.11.2021 \r\n \r\nPage 2 of 4 \r\n \r\nTHE COMPANIES (APPOINTMENT OF LEGAL ADVISERS) ACT, 1974. \r\n \r\n1ACT NO. X OF 1974 \r\n \r\n[1st March, 1974] \r\n \r\nAn Act to provide for the appointment of Legal Advisers to companies \r\n \r\nWHEREAS it is expedient to provide for the appointment of Legal Advisers to companies \r\nand matters connected therewith; \r\n \r\nIt is hereby enacted as follows:— \r\n \r\n1.  Short title, extent and commencement.—(1)   This Act may be called the Companies \r\n(Appointment of Legal Advisers) Act, 1974.  \r\n \r\n(2) It extends to the whole of Pakistan.  \r\n \r\n(3) It shall come into force at once. \r\n \r\n2. Definitions. In this Act, unless there is anything repugnant in the subject or context,— \r\n \r\n(a)   “advocate” means an advocate entered in any roll under the provisions of \r\nthe Legal Practitioners and Bar Councils Act, 1973 (XXXV of 1973);  \r\n \r\n2[(aa)“Commission” means  the Securities  and  Exchange  Commission  of   Pakistan \r\nestablished under section 3 of the Securities and Exchange Commission of \r\nPakistan Act,1997 (XLII of 1997);] \r\n \r\n3[(b) “company” means a company formed and registered under the Companies \r\nOrdinance, 1984 (XLVII of 1984), having paid up capital of more than \r\nseven and a half million Rupees or a company limited by guarantee or an \r\nassociation registered under section 42 of the said Ordinance;] \r\n \r\n(c)  “Legal Adviser” means a person appointed as such under section 3; 4[*] \r\n \r\n(d)  “registered firm” means a firm registered under the Partnership Act, 1932 (IX \r\nof 1932), all the partners of which are advocates 5[;] \r\n \r\n5[(e)  “Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984); and \r\n \r\n(f)  “Registrar” shall have the same meaning as are assigned to it in the Ordinance.] \r\n \r\n_________________________________________________________________________________  \r\n1For Statement of Objects and Reasons, see Gaz. of p., 1973, Ext., Pt. III, p. 1848. \r\n2Ins. by the Companies (Appointment of Legal Advisers) (Amdt.) Act, 2017 (Act II of 2017), s.2. \r\n3Subs. by the Companies (Appointment of Legal Advisers) (Amdt.) Act, 2017 (Act II of 2017), s.2. \r\n4Ommitted by the Companies (Appointment of Legal Advisers) (Amdt.) Act, 2017 (Act II of 2017), s.2. \r\n5Subs. and added by the Companies (Appointment of Legal Advisers) (Amdt.) Act, 2017 (Act II of 2017), s.2.\r\n \r\nPage 3 of 4 \r\n \r\n3. Appointment of Legal Adviser.—(1) Every company shall appoint at least one Legal \r\nAdviser on retainership to advise such company in the performance of its functions and the discharge \r\nof its duties in accordance with law 1[and in accordance with the terms and conditions of \r\nagreement entered into by and between the company and Legal Advisor or required by law or \r\nprescribed by any rules, regulations governing the company]: \r\n \r\nProvided that a company in existence immediately before the commencement of this Act shall \r\nbe deemed to have complied with the provisions of this sub­section if it appoints a Legal Adviser \r\nbefore the expiration of three months from such commencement. \r\n \r\n(2) No person other than an advocate 2[of High Court] or a registered firm shall be appointed \r\nto be a Legal Adviser. \r\n \r\n3[4. Retainer.— Every Legal Adviser appointed by a company shall be paid a retainer which \r\nshall not be less than five thousand rupees per mensum or such higher amount as may be notified by \r\nthe Federal Government in the official Gazette.] \r\n \r\n5. Who may not be appointed Legal Adviser.—(1) A company shall not appoint an \r\nadvocate or a registered firm to be its Legal Adviser if, upon such appointment, the number of \r\ncompanies of which such advocate or firm is a Legal Adviser will exceed,— \r\n \r\n(a)  in the case of the advocate, three; or \r\n \r\n(b)  in the case of the firm, the product of three and the total number of partners of \r\nthe firm:  \r\n \r\nProvided that a company in existence immediately before the commencement of this Act shall \r\nbe deemed to have complied with the provisions of this sub­section if, before the expiration of three \r\nmonths from such commencement, it terminates the appointment of the advocate or registered firm \r\nthe appointment of whom or which is prohibited by this sub­section. \r\n \r\n(2) No compensation shall be payable for the termination of an appointment or agreement \r\nunder or by virtue of the operation of the provisions of sub­section (1). \r\n \r\n6. Power to exempt.___ The Federal Government may, by notification in the official \r\nGazette, exempt any company or class of companies from the operation of the provisions of \r\nsub­section (1) of section 3 subject to such conditions and for such period as may be specified in the \r\nnotification. \r\n \r\n4[7. Penalty, adjudication of offence and appeal.___(1) Any person who contravenes any \r\nprovision of this Act or rules or regulations made thereunder shall be guilty of an offence and shall be \r\nliable to a penalty to be imposed by the Commission as under:___ \r\n \r\n \r\n_________________________________________________________________________________  \r\n1Added by the Companies (Appointment of Legal Advisers) (Amdt.) Act, 2017 (Act II of 2017), s.3. \r\n2Ins. by the Companies (Appointment of Legal Advisers) (Amdt.) Act, 2017 (Act II of 2017), s.3. \r\n3Subs. by the Companies (Appointment of Legal Advisers) (Amdt.) Act, 2017 (Act II of 2017), s.4. \r\n4Subs. by the Companies (Appointment of Legal Advisers) (Amdt) Act, 2017 (Act II of 2017), s.5. \r\n \r\n          \r\n \r\n \r\n(a)  in the case of an individual including directors of the company, such sum \r\nwhich may extended to one hundred thousand rupees; and \r\n \r\n(b)  in the case of company, such sum which may extend to two hundred thousand \r\nrupees. \r\n \r\n(2) The amount of penalty imposed under sub­section (1) shall be payable to the Commission \r\nand may be recovered as provided under section 162 of the Securities Act, 2015 (III of 2015). \r\n \r\n(3) Any person aggrieved by an order passed by the Commission or an officer authorized in \r\nthis b ehalf may prefer an appeal to Appellate Bench of  the Commission under section 33 of  the \r\nSecurities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997). \r\n \r\n(4) The Commission, before adjudication of contravention of, or failure in complying with, \r\nany provision of this Act, rules or regulations, shall give show cause notice and reasonable opportunity \r\nof being heard to the company or person. \r\n \r\n(5) From the date of coming into effect of this section, in respect of all prosecutions filed under \r\nthe substituted section 7 the respective courts shall continue with the pending proceedings and \r\nmay impose penalty as provided under section 7 as substituted.] \r\n \r\n1[7A. Penalty for false statement.— Whoever, in any return or document, required by or for \r\nthe purposes of any of the provisions of this Act, willfully makes a statement false in any material \r\nparticular, knowing it to be false, shall be punishable with imprisonment for a term which may extend \r\nto one year or with fine which may extend to two hundred thousand rupees or with both.] \r\n \r\n8. Power to make rules.—(1) The Federal Government may, by notification in the \r\nofficial Gazette, make rules2 for carrying out the purposes of this Act. \r\n \r\n(2) In particular and without prejudice to the generality of the foregoing provision, such \r\nrules may provide for the maintenance of registers of Legal Advisers by companies, the form in which \r\nsuch registers shall be maintained the furnishing of information by companies and the intervals at \r\nwhich such information shall be furnished. \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n_________________________________________________________________________________ \r\n \r\n 1Ins. by Companies (Appointment of Legal Advisers) (Amdt.) Act, 2017 (Act II of 2017) ,s.6. \r\n  \r\n2For the Companies (Appointment of Legal Advisers) Rules, 1975, see S.R.O. No. 373 (1)/l975. dt. 2­3­1975, Gaz. of P., 1975. Ext.. (Ibd.) \r\nPt, II, pp. 559­560.",
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