Law:

Section:

Companies Ordinance (XLVII of 1984)--- ----Ss. 158 & 476---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33---Failure to convene Annual General Meeting by Company even in extended period of one month---Chief Executive Officer/appellant was responsible to ensure timely preparation of accounts and removal of the objections of the Board of Directors in any appropriate manner, but he failed to perform the required role---Other Directors of the company, were not to be instrumental to violate the mandatory requirements of the law and in case of any objection on the accounts they must act in accordance with law---Default under S. 158 of the Companies Ordinance, 1984 had been established , however, by considering the facts of the case and subsequent compliance of the company, Commission took lenient view---Penalty of fine imposed on the appellant, was converted into a warning and appellant Chief Executive Officer of the company was directed to ensure strict compliance of the relevant provisions of law in future. THIS ORDER PASSED BY: TAHIR MAHMOOD, COMMISSIONER (C&CD-CLD):---.--- This Order shall dispose of Appeal No. 54 of 2016 filed under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 (the Act) against the Order dated 14/06/16 (the Impugned Order) passed by the Respondent under section 158 read with section 476 of Companies Ordinance 1984 (the Ordinance). 2. Brief facts of the case are that Saudi Pak Leasing Company Limited (the Company) failed to convene its Annual General Meeting (the AGM) for the year ended 30/06/15 on 31/10/15 as required under subsection (1) of section 158 of the Ordinance. The Company was initially granted one month extension to conduct the AGM by 30/11/15 however, the Company failed to conduct the AGM within this period and requested for another extension which was granted with direction under section 170 of the Ordinance to convene the delayed AGM latest by 31/12/15. Despite the extended time line, the Company still failed to hold the AGM. Therefore, a Show Cause Notice (the SCN) dated 16/03/16 was issued to Mr. Muhammad Tariq Masood (the Appellant) and other directors. 3. The…

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