The Companies (Appointment of Legal Advisors) Act, 1974
The Act was enacted for catering the requirement of appointing a legal adviser for the companies having a paid up capital of above 7.5 million.
The Companies (Appointment of Legal Advisors) Act, 1974 was enacted on 5th March 1974 to provide and regularize appointment of legal advisers to the companies having paid-up capital above than Rs. 7.5 million or companies limited by guarantee and the limited liability partnership firms. This Act prescribes that no person other than an Advocate be appointed as Legal Advisor and term Advocate is being defined as an Advocate entered in any roll under the provisions of the Legal Practitioners and Bar Councils Act, 1973 (XXXV of 1973). Under this Act any person who contravenes any provision of this Act or Rules, or Regulations made thereunder shall be guilty of an offence and shall be liable to a penalty to be imposed by the Commission in the case of an individual including directors of the company, such sum which may extend to one hundred thousand rupees and in the case of company, such sum which may extend to two hundred thousand rupees. Whereas the amount of penalty imposed under sub-section (1) of Section 7 of Companies (Appointment of Legal Advisors) Act, 1974 shall be payable to the Commission and may be recovered as provided under section 162 of the Securities Act, 2015 (III of 2015). The Act also elaborates that any person aggrieved by an order passed by the Commission, or an officer authorized in this behalf may prefer an appeal to Appellate Bench of the Commission under Section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997).
