Law: Securities and Exchange Commission of Pakistan Act, (XLII of 1997)

Section: 33

Securities and Exchange Commission of Pakistan Act (XLII of 1997)--S. 33--- Companies Ordinance (XLVII of 1984), Ss. 204-A(2) & 498---Company having failed to appoint an independent share Registrar in terms of S.204-A(2) of the Companies Ordinance, 1984, Executive Director (Enforcement) of the Commission vide impugned order imposed penalty of Rs.200,000 on the company, which had filed appeal against impugned order---Share Registrar was appointed for good corporate governance who was responsible for keeping the company's register of share-holders up-to-date, the distribution of share-holder communications and administering the payment of dividends etc.---Contention of the company that default in appointment of independent share Registrar continued from the previous management; and that present management was not aware of the legal requirement, was repelled as ignorance of law was no excuse---One was bound by a law, even if one did not know of it---Management of the company was responsible to be vigilant regarding the applicable laws and it ought to comply with the laws at all times---Chief Executive Officer of the company was responsible for conduct of affairs of the company and it was his responsibility to ensure that all legal requirements were complied with---Executive Director (Enforcement) of the Commission had already taken a lenient view in the impugned order by imposing a penalty of Rs.200,000 only on the company under S.498 of the Companies Ordinance, 1984 instead of the maximum penalty of one million rupees on every Director of the company---Impugned order could not be interfered with in appeal, in circumstances. ORDER This order shall dispose of Appeal No.42 of 2010 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 against the order dated 20-8-2010 (the "Impugned Order") passed by the Respondent. 2. The annual accounts for the Hamid Textile Mills Limited (the "Company") for the year ended 30-6-2009 revealed that the Company did not appoint an independent share registrar in terms of section 204-A(2) of the Companies Ordinance, 1984 (the "Ordinance"). 3. Show cause notice dated 16-4-2010…

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