Law:

Section:

Insurance Ordinance (XXXIX of 2000)--- ----Ss. 11(1)(F), 12 & 156---Insurance Companies (Sound and Prudent Management) Regulations, 2012, Regln. 2(2)--- Appointment of Directors without approval by an Insurance Company---Company had appointed three persons as Directors without approval---Show-cause notice, was issued to the Directors of the company, calling upon them to show-cause as to why fine as provided under S.156 of the Insurance Ordinance, 2000, should not be imposed for non-compliance with Regln.2(2) of the Insurance Companies (Sound and Prudent Management) Regulations, 2012; read with Ss.11(1)(F) & 12 of the Insurance Ordinance, 2000---Director (Insurance), Securities and Exchange Commission, dissatisfied with the response of Directors of the company, found that appellants, had not only contravened the provisions of law by not seeking approval of the Commission before appointing Directors, but also ignored the Commission"s express demand to file a duly completed application for consideration and approval of the Commission---Taking a lenient view, fine of Rs.10,000 was imposed on each of the Directors of the company and Rs.100,000 on the company---Chief Executive of the company, had admitted the default on behalf of the company, and requested for the condonation of penalty; that with effect from 1-10-2015, the company had stopped entering into new contracts of insurance; as such no business was being conducted by the company and that legal process of member's voluntary winding up of the company under S.144 of the Insurance Ordinance, 2000 had been initiated---Chief Executive Officer had confirmed all these facts in writing---Director (Insurance) of the Commission had not objected to any of the grounds for condonation of penalty---Impugned order to the extent of penalty, was set aside and Directors of the company were asked to ensure compliance with the laws and regulations in future till the company was wound up. THIS ORDER PASSED BY: ZAFAR ABDULLAH, COMMISSIONER (SCD):---.--- 1. This order is in Appeal No. 40 of 2015 filed under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 against the order dated 22/09/15 (Impugned…

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