Law:

Section:

Companies Ordinance (XLVII of 1984)------- --------S. 254(6)------- Appointment of unqualified person as Auditor-------Imposition of penalty-------Appeal to Appellate Bench of the Commission-------Company had notified the appointment of Auditor, who was not qualified person as per information available in Form 'A' and Form 29------- Show-cause notice was issued to the Auditor for violation of S. 254(6) of Companies Ordinance, 1984, as he had been notified as Auditor of the company since its incorporation-------No reply having been received from the appellant, Commission imposed a penalty of Rs.10,000 on the appellant-------Form A and Form 29 of the company, were filed and signed by appellant himself-------Appellant, in circumstances, had clearly violated S.254(6) of the Companies Ordinance, 1984, wilfully and deliberately-------Commission had already taken a lenient view-------In absence of any ground to interfere with impugned order, appeal was dismissed, in circumstances. THIS ORDER PASSED BY: TAHIR MAHMOOD, COMMISSIONER (CLD):-------- 1. This order shall dispose of Appeal No. 41 of 2013 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 against the order dated 15/05/13 (the "Impugned Order") passed by the Respondent. 2. The facts leading to the case are that M/s Avalon Homes (Pvt.) Ltd. (the "Company") had notified the appointment of Mr. Faraz Fazal Sheikh (the "Appellant") as auditor of the Company, who was an unqualified person, as per information available in Form A made up to 30/09/08 and Form 29 dated 30/09/08. 3. Show Cause Notice dated 05/11/12 ("SCN") was issued to the Appellant for the prima facie violation of section 254(6) of the Companies Ordinance, 1984 (the "Ordinance") as he had been notified as auditor of the Company since its incorporation. The Appellant vide letters dated 05/11/12 and 19/12/12 was asked to explain and clarify as to why penalty as provided in law may not be imposed for acceptance of illegal appointment as an auditor. No reply was received from the Appellant and the Appellant vide letter dated 01/01/13 requested for more time to submit reply. Hearing on the matter was…

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