Law:

Section:

Companies Ordinance (XLVII of 1984)-------Ss. 204-A(1) & 498---Failure to appoint whole time secretary---Company, being a public listed company was required under S.204-A(1) of the Companies Ordinance, 1984 to have a whole time secretary possessing prescribed qualification, but company failed to do so---Objective of the mandatory appointment of a whole time company secretary was to make sure full compliance with all the statutory provisions and the Corporate Laws applicable to the company as being a listed entity---Company which had contravened the provisions of S.204-A(1) of the Companies Ordinance, 1984, Directors and Chief Executive of the company, had made themselves liable for a fine as provided under S.498 of the Ordinance---Company and its Directors had failed to perform their duties with due care and prudence---Directors of the company, who had some fiduciary duties i.e. duties held in trust and some wider duties imposed by statutes, were supposed to be well aware of their legal obligations in connection with statutory requirements of S.204-A(1) of the Companies Ordinance, 1984---Penalty as provided under S.498 of the Companies Ordinance, 1984 could be imposed on to the company, but Commission taking a lenient view, instead of imposing the penalty, condoned the company because company took steps to appoint whole time secretary; and also tried to get fill the vacant position---Company was issued a 'stern warning' that in case of similar non-compliance in future, a strong action would be taken against the company. ORDER (Under section 204-A(1) read with section 498 of the Companies Ordinance, 1984) TARIQ HUSSAIN, DIRECTOR (INSURANCE)---This Order shall dispose of the proceedings initiated against Messrs Shaheen Insurance Company Limited (herein referred to as "the Company") for making default in complying with the provisions of section 204-A(1) of the Companies Ordinance, 1984 ("the Ordinance"). Background Facts 2. Messrs Shaheen Insurance, Company Limited ("the Company") is a public limited company, incorporated under the Companies Ordinance, 1984 ("the Ordinance"), and its shares are quoted on Karachi and Lahore Stock Exchanges. 3. The relevant…

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