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Books kept by Joint Stock Companies

According to section 230 of Companies Ordinance 1984 a Joint stock company should maintained following books of accouts.

(a) all sums of money received and expended by the company and the

matters in respect of which the receipt and expenditure takes place;


(b) all sales and purchases of goods by the company;


(c) all assets of the company;


(d) all liabilities of the company; and


(e) in the case of a company engaged in production, processing,

manufacturing or mining activities, such particulars relating to utilisation of

material or labour or the other inputs or items of cost as may be

prescribed, if such class of companies is required by the Commission by a

general or special order to include such particulars in the books of


Provided that all or any of the books of account aforesaid may be kept at

such other place in Pakistan as the directors may decide, and when the directors

so decide, the company shall, within seven days of the decision, file with the

registrar a notice in writing giving the full address of the other place.


(2) Where a company has a branch office, whether in or outside Pakistan,

the company shall be deemed to have complied with the provisions of sub-section (1) if

proper books of account relating to the transactions effected at the branch office are kept

at the branch office and proper summarised returns, made up to date at intervals of not

more than three months are sent by the branch office to the company at its registered

office or the other place referred to in sub-section (1).


(3) For the purposes of sub-section (1) and (2), proper books of account shall

not be deemed to be kept with respect to the matters specified therein if there are not

kept such books as are necessary to give a true and fair view of the state of affairs of the

company or the branch office, as the case may be, and to explain its transactions.


(4) The books of account and other books and papers of every company shall

be open to inspection by the directors during business hours.


(5) The directors shall form time to time determine whether and to what

extent and at what time and places and under what conditions or regulations the accounts

and books or papers of the company or any of them shall be open to the inspection of

members, not being directors, and no member, not being a director, shall have any right of

inspecting any account and books or papers of the company except as conferred by the

Ordinance or authorised by the directors or by the company in general meeting.


(6) The books of account of every company relating to a period of not less

than ten years immediately preceding the current year shall be preserved in good order:

Provided that, in the case of a company incorporated less than ten years before

the current year, the books of account for the entire period preceding the current year

shall be so preserved.


(7) If a company fails to comply with any of the requirements of this section,

every director, including chief executive and chief accountant, of the company who has

knowingly by his act or omission been the cause of such default shall,—


(a) in respect of a listed company, be punishable with imprisonment for a

term which may extend to one year and with fine which shall not be less

than 1[twenty] thousand rupees nor more than 2[fifty] thousand rupees,

and with a further fine which may extend to 3[five] thousand rupees for

every day after the first during which the default continues; and


(b) in respect of any other company, be punishable with imprisonment for a

term which may extend to six months and with fine which may extend to

4[ten thousand] rupees.



The term “chief accountant” shall include the chief accountant or

any other person, by whatever name called, who is charged with the responsibility of

maintenance of books of account of the company.



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Comment by Muhammad Anwar on October 29, 2012 at 6:28pm



Comment by _- FAISAL -_ on October 8, 2012 at 2:50am



Comment by Qasim Ali on October 7, 2012 at 5:16pm

kyun aap mujhe batye aap ko accounts main kya samj nahin aata. after all, I am professional Accountant

Comment by Muslimah on October 7, 2012 at 5:11pm

mje accounts kabi smjh ni asakti

3nbymend0tcib Comment by 3nbymend0tcib on October 7, 2012 at 3:17pm

Comment by + !♥ A VU GROUP ♥! + on October 7, 2012 at 3:08pm


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