IMPLIMENTATION OF DOCTRINE OF LIMITED LIABILITYAND ITS EFFECT ON JURISPRUDENCE OF WESTERN AND ISLAMIC LAW

Abstract

A status accepted on the basis of the concept of legal entity of a company or a company since the decision saloman v salomon and co. Ltd reports by reference 1997 AC 22, and the same concept has become an integral part of corporate law worldwide. The company law of Pakistan also allows the formation of legal entities with the concept of limited liability, namely companies limited by shares or limited by guarantee. There is also a misconception that the liability of the company or the society is limited, one must first understand that the liability of the company is always unlimited as it is a separate legal entity from the founder. or member, the term company for limited liability does not limit a company's liability in any case. The topic of this research paper deals with the most important issue faced by a group of corporate stakeholders and has not yet been satisfactorily addressed by Western jurists. The company's creditors, if not secured by other collateral, feel stressed and extremely fearful of insolvency until their credits are met; so this is one of the big unresolved problems in the Pakistani economy, most of the investment takes place in limited liability companies which gives real benefits and big savings compared to other forms of investment. other commercial vehicles. However, the doctrine of limited liability still poses many problems, as this protection is only granted to shareholders in the event of the company's disappearance or insolvency. The doctrine of limited liability as applied by Western jurisprudence offers no solution to this problem. creditors of the same company and no consideration is given in lieu of limited liability to creditors or other claimants of the company, nor do the common laws provide for complete solution or any other way to solve this social problem among the stakeholders in the society. Corporations are still governed by traditional corporate law all over the business world with the same subject matter and especially in Pakistan which is a developing country and under the auspices of limited liability, these names Big white criminals are engaging in fraudulent activities without fear of any civil consequences. or criminal liability.