Political Economy, Concept and Rationale of Winding-up of Companies and Corporate Sector

Abstract

The concept of political economy develop the relationship between the study of individuals and society, and more specifically, the relationship between citizens and state for better utilization of economic resources.There is a strong feeling that with the passage of time corporate law in the present modern political economy, will be increasingly globalize through better corporate and political culture and the same is likely to impact on world and Pakistan political economy. Perhaps one area where further efforts are required is with regard to development of a more flexible corporate rescue in Pakistan in the context of present economic and political situation. The winding up process is the legal and economic exit mechanism by which untenable or uncompetitive companies are taken off-line from the capitalist market economy just like political parties with frail political thought are eroded from the political scene. The winding up of company has an immense impact on public view with regard to economic and political aspects. The process of winding up of the companies is seen as, the companies being fiscally and economically not practicable and viable in presence of weak economic and political culture.