Law:

Section:

(a) Securities and Exchange Commission (Insurance) Rules, 2002-------Regln. 16(1)(a)---Insurance Ordinance (XXXIX of 2000), Ss.46 & 156---Recording and reporting the Available for sale investments, without complying requirements of Regulations---Company had made an investment in the shares of another company---Company had not recorded the impairment, loss on said investment in its financial statement which constituted non-compliance of Regln.16(1)(a) of the Securities and Exchange Commission (Insurance) Rules, 2002 and S.46(1)(b) of Insurance Ordinance, 2000---Company was required to state their Available for sales investments at lower of cost or market value in terms of Provisions of Regln.16(1)(a) of Securities and Exchange Commission (Insurance) Rules, 2002, which had been violated as the company had stated its Available for sale investment in the shares of other company at cost, and had not booked impairment in the book value of those investments; as the market price of those shares had fallen well below the cost or book value, which persisted for a considerably longer period of time---Directors of the company had failed to perform their duties with due care and prudence---As the Directors were supposed to be well aware of their legal obligations in connection with statutory requirement of Regln.16(1)(a) of the Regulations, it could be legitimately inferred that the default was committed---Default, having been established, penalty as provided under S.156 of the Insurance Ordinance, 2000 could be imposed on the company and/or its Directors---Commission, taking lenient view condoned the company, issuing a stern warning that in case of similar non-compliance in future a stronger action would be taken against the company. (b) Companies Ordinance (XLVII of 1984)--- ----S. 196---Duties of the Directors---Directors, in addition to the day-to-day running of the company and the management of its business, also had some 'fiduciary' duties i.e. duties held in trust, and some wider duties imposed by statute; and breach of those statutory duties would usually be a criminal offence punishable by fine or imprisonment---Directors were gauged against a higher standard…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492