The concept in Companies Ordinance, 1984 does not appear to be against the Injunctions of Islam, Part 3
(vii) Section 62 of the Ordinance prevents injury and fraud, it is a regulatory section and is not repugnant to injunctions of Islam. There is also nothing against Quran and Sunnah in section 68.
(viii) The provision of section 81 which provides transfer by a nominee or a legal representative does not appear to be against the Injunctions of Islam.
(ix) Section 88 provides regulation of deposit.
(x) Section 90 provides classes and kinds of share capital.
(xi) Section 95 imposes restrictions on sale and purchase of Companies shares and holdings. Section 121 provides that certain mortgages and charges would be void if not registered. There is nothing therein which appears to be against the injunction of Islam. The restrictions imposed under section 121` safeguards the interest of members and creditors of a company.
(xii) Section 139 provides disqualification for appointment as receiver or manager. The disqualification as mentioned in this section are reasonable but point of reasonable qualification as mentioned in Article 62 of the Constitution can be incorporated for the purpose of improvement. The present contents of Section 139 are not opposed to the injunction of Islam.
(xiii) Section 146 provides certain restriction on’ commencement of business so as to stabilize the financial position of the company and to avoid the speculator steps and is not against the injunction of Islam.
(xiv) Section 179 is a procedural section which empowered the courts to take action on illegal Elections of Directors whereas section’s 187 and 190 provides the restrictions to save the company from unsafe hands i.e. persons having no financial interest in the company and the persons incapable to run the business, incompetent person and persons taking fiduciary behavior. There is nothing contrary to the Injunctions of Islam.
(xv) Section 195 is a procedural section. It relates with the loans to the Directors. This section does not appear against the Injunctions of Islam.
(xvi) Section 197 prohibits regarding making of political contribution by a company to any political party for any political purpose or to any individual or body. The powers under this section are salutary and designed to protect the company from political pressure. There is nothing contrary to the Injunction of Islam.
(xvii) Section 201 is procedural section. It imposes restrictions on ineligible persons to become director of the company. Sections 203, 206, 208, 223, 231(1) and 248 are salutary and designed to protect the company and the interest of the shareholder and are not against the Injunctions of Islam.
(xviii) Section 261 empowers the Registrar to collect information and explanations from any company. This section gives power to the Government to protect the interest of shareholders and is not against the Quran and Sunnah.
(xvix) Section 273 empowers the Court that no Director, Chief Executive, Manager, Agent or other officer of the company would be entitled to be paid any compensation for annulment or modification of a contract to which he is a party or he is a beneficiary. It does not appear to be against the Injunctions of Islam. Provision of section 274 does not appear to be against the Injunctions of Islam.
(xx) Section 275 is a regulatory section, which provides the procedure for winding up of a company under section 290. Perusal of the same shows that it does not appear to be against the Injunctions of Islam.
(xxi) Section 295(i) provides protection to a creditor or creditor having interest equal in amount. In case of mismanagement by a company, and in order to safeguard the interest, the authority, may, after giving the company an opportunity of being heard without prejudice, may appoint an Administrator to manage the affairs of the company. Perusal of the same does not appear to be against the Injunctions of Islam.
(xxii) Section 345 is also not against the Qur’an and Sunnah because it gives power to the courts to take action, if necessary so also section 405 of the Companies Ordinance 1984 which only provides the priorities to all other debts in case of winding up of a company.
(xxiii) Section 415 provides a penalty for fraud by officer of a company which has gone to liquidation by a Court of law. Section 420 is also penal provision to safeguard the interest of its shareholders, creditors etc. and not opposed to Injunctions of Islam
(xxiv) Section 464 provides procedure for the appointment of receiver and section 481 provides an appeal against acquittal by a company on the directions of the authority both of which not appear to be against the Injunctions of Islam.
(xxv) There is nothing in section 482(2), section 484, section 491 and section 493 of the Companies Ordinance 1984 which is against the Injunctions of Islam.