2009 PLP 1582 (CLD)
Show-Cause Notice No.EMD/233/53/2002-1282, dated 24th November, 2008
| Citation | 2009 PLP 1582 (CLD) |
| Forum / Court | Securities and Exchange Commission of Pakistan |
| Bench Members | N/A |
| Parties | Show-Cause Notice No.EMD/233/53/2002-1282, dated 24th November, 2008 |
| Primary Law | Companies Ordinance (XLVII of 1984) |
Q1: What are the key laws and sections cited in 2009 PLP 1582 (CLD)?
This judgment primarily cites: Companies Ordinance (XLVII of 1984) as referenced in Pakistani case law index.
Q2: Which judicial bench decided the case 2009 PLP 1582 (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: 2009 PLP 1582 (CLD) (Show-Cause Notice No.EMD/233/53/2002-1282, dated 24th November, 2008). Read the full summary and cross-referenced laws free on Pakistan Law Portal.
Laws Cited
Headnotes / Summary
Ss.160, 196 & 484
Review petition had been filed against order whereby a penalty of Rs.10,000 was imposed on the Chief Executive of the company under S.160(1) of the Companies Ordinance, 1984
Chief Executive of the company had requested the Commission that proceedings initiated against .him could be dropped as the fixed assets proposed to be disposed of did not constitute a sizable part of the total assets of the company
Chief Executive was asked vide letter to provide the list of scrapped items duly certified by the Auditors of the company to be disposed of along with the progress report relating to disposal of surplus land and company provided the requisite information to the Commission
Information as certified by the statutory Auditors of the company reflected that the assets proposed to be disposed of had a cost of Rs.662,824 which did not constitute to be a sizable part of the assets of the company
Provisions of subsection (3) of S. 196 as well as S. 160 of the Companies Ordinance, 1984, were not attracted
Penalty imposed under subsection (8) of S.160 of the Companies Ordinance, 1984, was withdrawn with no further action.
Judgment & Decree
In the matter of order dated February 25, 2009 under clause (b) of subsection (1) of section 160 of the Companies Ordinance, 1984 read with S.R.O. 1227 of 2005 ABID HUSSAIN, DIRECTOR (ENFORCEMENT).
This order shall dispose of the review application by the Chief Executive of Colony Thal Textile Mills Limited (hereafter referred to as "the Company") under section 484 of the Companies Ordinance, 1984 (hereinafter referred to as "the Ordinance') filed against the order under Clause (1) of subsection 160 of the Ordinance read with S.R.O. 1227 of 2005 dated February 25, 2009.
2. The brief facts of this case are that a penalty of Rs.10,000 was imposed on the Chief Executive of the Company vide order under subsection (1) (b) of the section 160 of the Ordinance dated February 25, 2009.
3. The Chief Executive of the company filed an application for the review of the order and requested the Commission that the proceedings initiated through the aforementioned order may please be dropped as the Fixed assets proposed to be disposed of does not constitute a sizeable part of the total assets of the company and this business should have not been included in the notice of AGM as special business.
4. The Chief executive vide letter dated April 6, 2009 was asked to provide the list of scrapped items duly certified by the auditors of the company to be disposed of along with the progress report related to disposal of surplus land. The company vide its letter dated April 16, 2009 provided the requisite information to the Commission.
5. The information as certified by the statutory auditors of the company reflected that the assets proposed to be disposed of have a cost of Rs.662,824 which does not constitute to be a sizeable part of the assets of the company, therefore, the provisions of subsection (3) of section 196 as well as section 160 of the Ordinance are not attracted.
6. Therefore, keeping in view the above facts the penalty imposed under subsection (8) of section 160 of the Ordinance through order dated February 25, 2009 is hereby withdrawn with no further action. However, the Chief Executive is hereby advised to provide the complete information to the Commission and to the shareholders at relevant time in order to avoid such circumstances in future. H.B.T./-17/SEC Order accordingly.