Law:

Section:

(a) Companies Ordinance (XLVII of 1984)-------Ss. 174, 186, 187(h), 188, 189 & 209(2)---Appointment of Directors of the company---Eligibility---Every private company would have not less than two Directors, and every public company not less than seven Directors, under provisions of S.174 of the Companies Ordinance, 1984---Under provisions of S.209(2) of the Companies Ordinance, 1984, each Director was required to hold the shares of an amount not exceeding the nominal value of the qualification shares i.e. Rs.5000 each, but no Director of the company was holding such shares---Directors of the company, in circumstances, would ipso facto cease to hold office of Directors, being not members of the company---Company having failed to comply with provisions of Ss.174, 187(h), 188 and 209(2) of the Companies Ordinance, 1984, was liable to be imposed penalty under Ss.186, 189, 209(2) of the Ordinance---Commission, instead of imposing the penalties, took a lenient view, and condoned the company due to reasons that company and its management had no intention to violate said provisions of law and that the effect of each contravention had not grossly harmed the interest of the company's shareholders. (b) Interpretation of statutes--- ----When two or more words, which were susceptible of analogous meaning, were coupled together 'noscitur ex sociis', they were understood to be used in cognate sense---Said words take as it were the colour from each other, the meaning of more general being restricted to a sense analogous to that of less general---In order to ascertain the meaning of any word or phrase that was ambiguous or susceptible to more than one meanings, resort had to be taken to the other words with which the ambiguous word was associated in the statute---If several words were connected by the copulative conjunction, a presumption would arise that they were of the same class, unless a contrary intention was indicated. Maxwell on Interpretation of Statutes - 12th Edition, Page 289; PLD 1984 SC 385 and Crawford on Statutory Construction, Page 325 rel. (c) Companies Ordinance (XLVII of 1984)--- ----Ss. 185 & 196---Duties of the Directors of company---Directors of…