Section 26 — Business and objects of a company

(1) A company may carry
on or undertake any lawful business or activity and do any act or enter into any
transaction being incidental and ancillary thereto which is necessary in attaining its
business activities:
Provided that—

(i) the principal line of business of the company shall be mentioned in
the memorandum of association of the company which shall always
commensurate with name of the company; and

(ii) any change in the principal line of business shall be reported to the
registrar within thirty days from the date of change, on the form as
may be specified and registrar may give direction of change of name
if it is in violation of this section.

Explanation.—“principal line of business” means the business in which
substantial assets are held or likely to be held or substantial revenue is earned or
likely to be earned by a company, whichever is higher.

(2) A company shall not engage in a business which is—

(a) prohibited by any law for the time being in force in Pakistan; or

(b) restricted by any law, rules or regulations, unless necessary licence,
registration, permission or approval has been obtained or
compliance with any other condition has been made:

Provided nothing in sub-section (1) shall be applicable to the extent of such
companies.
MEMORANDUM AND ARTICLES OF ASSOCIATION