Studies Note: Banking and Finance

<div dir="ltr" style="text-align: left;" trbidi="on"><div style="text-align: left;"></div><h2 style="text-align: left;"><span style="font-family: Times, 'Times New Roman', serif;">Reading List</span></h2><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Statutes and Regulations:</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Banking Companies Ordinance, 1962<span class="Apple-tab-span" style="white-space: pre;"> </span></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Companies Ordinance, 1984</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Competition Commission Ordinance, 2007</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Competition (Merger Control) Regulations, 2007</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Contract Act, 1872</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Foreign Exchange Regulation Act, 1947</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Foreign Exchange Manual of State Bank of Pakistan</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Income Tax Ordinance, 2001</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Listed Companies (Substantial Acquisition of Voting Shares) Ordinance, 2002</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Registration Act, 1872</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Sale of Goods Act, 1930</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Stamp Act, 1899</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>State Bank of Pakistan Act, 1956</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><span class="Apple-tab-span" style="white-space: pre;"> </span>Transfer of Property Act, 1882</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Case Law:<span class="Apple-tab-span" style="white-space: pre;"> </span></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Brooke Bond Pakistan vs. Aslma Bin Ibrahim and Another</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">[1997 CLC 1873]</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Re: The Companies Ordinance, 1984 and 2 Others</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">[PLD 1997 Karachi 230]</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Reliance Export (Pvt.) LTD and Others</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"> [2006 CLD 769]</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">A and J Apparel (Pvt.) LTD and Another</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">[2005 CLD 93]</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Shakarganj Mills LTD v. Crescent Ujala LTD</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">[2005 CLD 36]</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Kohinoor Raiwind Mills Limited v. Kohinoor Gujar Khan Mills, 2002 CLD 1314</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">In Re: Kohinoor Raiwind Mills Limited and others, 2002 CLD 1747</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">In Re: Pfizer Laboratories Limited, 2003 CLD 1209</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">International Multi Leasing Limited v. CALCORP, 2004 CLD 1</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Adamjee Insurance Company Limited v. Muslim Commercial Bank, 2003 CLD 463</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Adamjee Insurance Company Limited v. Muslim Commercial Bank, 2005 SCMR 318</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Books:</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Buying and Selling Private Companies – Simon Beswick & Humphrey Wine (Butterworths)</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Shareholders’ Agreements – Graham Stedman & Janet Jones (Sweet & Maxwell)</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Shareholders’ Agreements – John Cadman (Sweet & Maxwell)</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">The Acquisition of Business Assets – Jonathan Myers (Sweet & Maxwell)</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Guide to Takeovers & Mergers – Sridharan & Pandian (Wadhwa and Company Nagpur)</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">(Relevant extracts from Books will be provided at the material time)</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Classes</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">There will be 20 Classes. The Classes are divided as follows:-</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 1:<span class="Apple-tab-span" style="white-space: pre;">  </span>Introduction to mergers and acquisition and a general assessment of their significance in the Pakistan jurisdiction. How can mergers and acquisitions (“M&A”) take place. A general introduction to the three methods for M&A. What is an asset transfer? What is a share sale? What is a statutory merger? What are the legal provisions which would enable each of these transactions.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 2:<span class="Apple-tab-span" style="white-space: pre;">  </span>An example of an asset transfer. How are movable assets transferred? How are immovable assets transferred. What are the transaction costs associated with such transfers? What is the documentation required to implement such transfer?</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 3:<span class="Apple-tab-span" style="white-space: pre;">  </span>An example of a share sale in a private company. How are shares transferred in private companies? What are the transaction costs associated with the transfer? What is the documentation required to implement such transfer?</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 4:<span class="Apple-tab-span" style="white-space: pre;">  </span>An example of a share sale in a public company. How are shares transferred in public companies? What are the transaction costs associated with the transfer? What is the documentation required to implement such transfer.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 5:<span class="Apple-tab-span" style="white-space: pre;">  </span>What are shareholder agreements? What purpose do they serve and what provisions are customarily included in shareholder agreements. Share transfer restrictions, rights of first refusal, voting rights, tag along rights, drag along rights etc. will be considered.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 6:<span class="Apple-tab-span" style="white-space: pre;">  </span>An example of a statutory merger under the Companies Ordinance, 1984. How is it undertaken and what does it involve. A comparative analysis of available options for statutory or other mergers in other jurisdictions.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 7:<span class="Apple-tab-span" style="white-space: pre;">  </span>Activities prior to initiation of acquisition process. What is a legal due diligence? What does it involve and how is it undertaken?</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 8:<span class="Apple-tab-span" style="white-space: pre;">  </span>Detailed consideration of Share Purchase Agreements and Asset Transfer Agreements. Warranties/indemnities and covenants.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 9:<span class="Apple-tab-span" style="white-space: pre;">  </span>What is the takeover law applicable in Pakistan and how to comply with provisions of the takeover law.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 10:<span class="Apple-tab-span" style="white-space: pre;"> </span>What is the competition law applicable in Pakistan and how to comply with provisions of the competition law.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 11:<span class="Apple-tab-span" style="white-space: pre;"> </span>Comparison of Pakistan takeover law with takeover law in India and UK.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 12:<span class="Apple-tab-span" style="white-space: pre;"> </span>Comparison of Pakistan competition law with competition law in India and UK.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 13:<span class="Apple-tab-span" style="white-space: pre;"> </span>How to close an acquisition. Conditions precedent to closing and legal opinions.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 14:<span class="Apple-tab-span" style="white-space: pre;"> </span>Acquisitions by foreign entities of Pakistan companies. Restrictions in Foreign Exchange Laws and how to structure the acquisition.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 15:<span class="Apple-tab-span" style="white-space: pre;"> </span>Taxation implications of M&A. What are the types of taxes that are relevant and other transaction costs associated with transfers.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 16:<span class="Apple-tab-span" style="white-space: pre;"> </span>What is a hostile takeover and how is it regulated in the Pakistan jurisdiction? An example of a hostile takeover under Pakistan law. Comparison with hostile take regimes in other jurisdictions.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class 17:<span class="Apple-tab-span" style="white-space: pre;"> </span>What is the general role of regulators in connection with mergers and acquisitions? What is the rationale and aim of regulation in this area of the law and how does the local regulatory regime compare with regulatory regimes in other jurisdictions?</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Classes 18 to 20 will involve the division of the Class into two groups, one group representing the Seller and one group the Buyer. There will be a negotiation and finalization of a Share Sale Agreement and a Shareholders Agreement between the two groups during these four sessions based on a transaction structure and factual matrix to be provided.</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Assessment</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Class participation:<span class="Apple-tab-span" style="white-space: pre;">  </span>20%</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">Final Exam:<span class="Apple-tab-span" style="white-space: pre;">   </span>50%</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">2 Course Assignments:<span class="Apple-tab-span" style="white-space: pre;"> </span>15% each</span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div style="text-align: left;"><span style="font-family: Times, Times New Roman, serif;">**************************</span></div></div>

MERGERS & ACQUISITIONS ADVANCED COMPANY LAW COURSE

Reading List Statutes and Regulations: Banking Companies Ordinance, 1962 Companies Ordinance, 1984 Competition Commission Ordinance, 200...