Every company registered in Pakistan, having paid up capital of Rs.500, 000 or more is required to appoint a legal adviser / Advocate or a Lawyer approved by Bar Council in terms of the Companies (Appointment of Legal Advisors) Act, 1974, (the Act). In case of failure to appoint a Legal Advisor renders the manager or other responsible officer of the company liable to imprisonment which may extend to three months or fine, or both.
In different regimes (Appointment of Legal Advisors) Act, 1974, has been enforced through Law making bodies. The Sindh High Court, vide its order dated 16 March, 2010 directed the SECP to compile and provide to the Secretary Finance, Government of Pakistan, a report containing the names of all companies who have not appointed legal advisors / Advocates/ Lawyer in terms of the Act, for the purpose of initiating necessary action against them as per law.
The list of companies who default is readily available with SECP due to use of Electronic Services by SECP. Therefore getting away without appointing a lawyer/ advocate for the purposes of this act is more enforceable today. The lawyer/ Advocate has to be paid fixed monthly fee for being retained on the board of any company. One lawyer/ advocate can represent only three companies at a time. If the lawyer/advocate resigns from the post of Legal Advisor/ Advocate to the company. The company may appoint another and intimate SECP within a maximum of 14 working days to avoid penalty/ imprisonment under Appointment of Legal Advisors Act, 1974.
M&M is a premium law firm and we have been Appointed as Legal Advisors / Advocate to various companies who depose their trust in M&M time and again. If you are looking for a reliable