Law: Securities Act, 2015

Section: 100

THIS ORDER PASSED BY: ZAFAR ABDULLAH, COMMISSIONER (SCD):---.--- 1. This order shall dispose of Appeal No. 27 filed by the Appellants against the order dated 05/04/16 (the Impugned Order) passed by the Respondent under section 160 read with section 100 of the Securities Act, 2015 (the Act). 2. Brief facts of the case are that Hashmi Can Company Limited (the Company) was put on the defaulter counter of PSX on 03/01/07 due to failure to hold Annual General Meetings the AGMs), failure to pay two years annual listing fee and failure to join Central Depository System (the CDS). In consequence, trading of Company shares was suspended on 16/02/12. The Respondent issued a direction on 01/09/15 under section 100 of the Act to the directors of Company including Appellants to undo the afforested defaults. However, the Appellants failed to comply with the direction. The CEO of the Company vide letter dated 08/09/15 stated that operations of the Company are closed due to litigation before different courts, therefore Company cannot pay outstanding dues and cannot hold the AGMs. He further stated that after conclusion of litigation, the Company intends to go into voluntary winding up. 3. In view of failure to comply with the direction, a Show Cause Notice (the SCN) dated 16/10/15 under section 160, read with section 100 of the Act was served on Appellants as to why the penal action may not be taken against them under section 159 of the Act. First hearing in the matter was fixed on 17/12/15 however; it was adjourned till end of December 2015 on the request of Appellants representative (Azizuddin and Shahid Law Associates). Thereafter, case was fixed on 20/01/16, 26/01/16, 09/02/16 and 03/03/16 however, despite ample opportunities no one appeared on behalf of Company or the Appellants. In the circumstances, the Respondent imposed a penalty of Rs. 500,000 on the directors including Appellants in the following manner: S. No. Name of Respondents Amount. Mr. Munawar Malik 500,000 Mr. Imran Rafiq (Nominee Director NIT) 500,000 Mr. Zaheer Malik 500,000 Mrs. Mussrat Bano Malik 500,000 Ms. Humera Malik 500,000 Mr. Naseer A. Malik 500,000 Mr. Asif Mafti 500,000. Total 1500,000 4. The…

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