The Companies Ordinance, 1984

Section

43.    Provision as to companies limited by guarantee.- 

(1)    In the case of a company limited by guarantee and not having a share capital, every provision in the memorandum or articles or in any resolution of the company purporting to give any person a right to participate in the divisible profits of the company otherwise than as a member shall be void.

(2)    For the purpose of the provisions of this Ordinance relating to the memorandum of a company limited by guarantee and of sub- section (1), every provision in the memorandum or articles, or in any resolution, of a company limited by guarantee purporting to divide the undertaking of the company into shares or interests shall be treated as a provision for a share capital, notwithstanding that the nominal amount or number of the shares or interests is not specified thereby.