Law:

Section:

Companies Ordinance (XLVII of 1984)------- --------Ss. 242, 244 & 476-------Failure to annex Director's Report with accounts filed with Registrar of companies-------While examining the annual audited accounts of the company for relevant financial year, it was observed that the Director's report was not annexed therewith in the accounts filed with the Registrar under S.242 of the Companies Ordinance, 1984-------Director (Enforcement) of the Commission being dissatisfied with the response of company to show-cause notice, imposed a penalty of Rs.4,000 on each Director and Chief Executive Officer of the company for violation of S.244 of the Companies Ordinance, 1984-------Section 242 of the Companies Ordinance, 1984, mandated the filing of the accounts along with required documents and reports with the Registrar-------If the provision for filing audited accounts was violated by company, it should be dealt, through the penal provision contained in subsection (4) of S. 242 of the Companies Ordinance, 1984 laid down the obligation of "issuing, circulating and publishing" of the accounts along with different documents and reports-------Provisions of Ss. 244 & 242 of the Companies Ordinance, 1984, in circumstances, were independent with respect to filing, issue, circulation and publication perspective under the Ordinance-------Non-filing of the documents under S.242 of the Companies Ordinance, 1984, could not be presumably considered a violation of S.244 of the Ordinance, on the basis that since documents had not been filed with the Registrar, same could not be treated as "issued, circulated or published" to or for the Registrar-------Conclusion drawn by the Director (Enforcement) of the Commission could not be accepted being not as intended statutory interpretation of the law-------Show-cause notice, and impugned order, were set aside being illegal and result of mis-interpretation of law-------Case was remanded to Director (Enforcement) with direction to initiate fresh proceedings and adjudge the matter accordingly. THIS ORDER PASSED BY: ZAFAR ABDULLAH, COMMISSIONER (SCD):------------- 1. This order shall dispose of Appeal No. 20 of 2014 filed under section 33…

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