2010 PLP 34 (CLD)
Show-Cause Notice No. EMD/233/262/2002-2534, dated 30th March, 2009
| Citation | 2010 PLP 34 (CLD) |
| Forum / Court | Securities and Exchange Commission of Pakistan |
| Bench Members | N/A |
| Parties | Show-Cause Notice No. EMD/233/262/2002-2534, dated 30th March, 2009 |
| Primary Law | Companies Ordinance (XLVII of 1984) |
Q1: What are the key laws and sections cited in 2010 PLP 34 (CLD)?
This judgment primarily cites: Companies Ordinance (XLVII of 1984) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2010 PLP 34 (CLD)?
The case was heard and decided by the Securities and Exchange Commission of Pakistan bench comprising: N/A.
Q3: What is the official citation format for this judgment on Pakistan Law Portal?
Cite this legal precedent as: 2010 PLP 34 (CLD) (Show-Cause Notice No. EMD/233/262/2002-2534, dated 30th March, 2009). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Ss.244, 245 & 476
Improper issuance, circulation or publication of balance-sheet or profit and loss account--Imposition of penalty
Company failed to annex with its annual audited account for the relevant year certain reports and statements
Company had also failed to annex Directors' Report with quarterly accounts filed with the Commission under the provisions of S.245 of the Companies Ordinance, 1984 as required under S.244 of said Ordinance-Chief Executive of the company, in response to show-cause notice, had submitted that the default was just an act of oversight on the part of office staff who forgot to append the annexures comprising said reports/statements
Deficient information, however was provided to the Commission
Chief Executive further stated that default was inadvertent and not knowingly and wilfully and without any intention to violate the law and prayed for condonation of default
Regret by the representative of the company and assurance to exercise due care in future was appreciated
Despite the fact that the default was established and same had also been admitted, lenient view was taken of said default and instead of imposing maximum penalty of Rs.5,000 on the Chief Executive of the company, Chief Executive was warned to observe the compliance of law in letter and spirit.
Judgment & Decree
ALI AZEEM IKRAM, DIRECTOR (ENFORCEMENT).
This order shall dispose of the proceedings initiated through Show-Cause Notice No.EMD/233/262/2002-2534 dated 30-3-2009 against the Chief Executive of Kohinoor Industries Limited ("Company") under the provision of section 244 of the Companies Ordinance, 1984 ("Ordinance").
2. The brief facts of the case are that Company failed to annex with its annual audited accounts for the year ended June 30, 2008 the following reports and statements:-- (a) Notice of Annual General Meeting ("AGM") held on 31-10-2008. (b) Directors Report (c) Auditors Report (d) Statement of compliance of Code of Corporate Governance. (e) Auditors review report to the Members of the Company. (f) Pattern of shareholding (g) Form of proxy.
3. Moreover, the Company has failed to annex Directors' Report with the quarterly accounts filed with the Commission under the provisions of section 245 of the Ordinance for the periods ended on 30-9-2008 and 31-12-2008 as required under section 244 of the Ordinance.
4. Consequently, a show-cause notice was served upon the Chief Executive of the Company to show-cause in writing as to why penalty as provided under section 244 read with section 476 of the Ordinance may not be imposed on him. A period of 14 days was given to respond to the afore-said notice. It was further stated in the notice that in case the directors intend to appear in person or through counsel to clarify the queries raised therein they may communicate the same to the Commission.
5. The show-cause notice was responded by Mr. M. Azam Saigol, Chief Executive through letter dated nil. It was submitted by the Chief Executive that the default was just an act of oversight on the part of official staff who forgot to append the annexure comprising, the afore-said reports/statements. However, the deficient information was provided to this Commission along with the reply. It was further stated that the default was inadvertent and not knowingly and wilfully and without any intention to damage the law and prayed for condonation of the default.
6. Hearing in the matter was fixed for 1-7-2009 where Mr. M. Omer Farooq, Director ("Company's Representative") appeared on behalf of the Chief Executive by providing power of attorney and reiterated the same as per written submission and assured that due care will be exercised by the Company in future.
7. I have duly considered the submissions of the Company's representative and I really appreciate his regret for the default and assurance to exercise due care in future. Despite the fact that the default is established and same has also been admitted, I am inclined to take a lenient view of the default and instead of imposing maximum penalty of Rs.5,000 (rupees five thousand only) on the Chief Executive of the Company, hereby warn the Chief Executive of the Company to observe the compliance of law in letter and spirit. H.B.T./32/SEC Order accordingly.