Law: Companies Ordinance, 1984

Section: 237,476,492

Companies Ordinance (XLVII of 1984)--- ----Ss. 237, 476 & 492---Securities and Exchange Commission of Pakistan Act (XLII of 1997), Ss. 33 & 34---Concealing of information---Annual Audited Financial Statement---Bankruptcy proceedings, non-disclosure of s were management of public limited company who were imposed fine penalty by Securities and Exchange Commission of Pakistan (SECP) for showing transactions to its wholly owned subsidiary abroad which had bankrupted in year 2014---Plea raised by appellants was that they were unaware of bankruptcy proceedings till year 2015---Validity---Company of appellants was a public limited company, the consolidated financial statements (annual, half yearly and quarterly financial statements) filed by it were a matter of public record---In its accounts for the period ending on 30-6-2014 and 30-9-2014, company of appellants had shown trading transactions to have been carried out by bankrupted foreign company in huge amounts---Such accounts had shown long term investments and impairment with respect to the bankrupt foreign company---Accounts in addition to company of appellants for the periods ending on 31-12-2014 and 31-3-2015 had shown goodwill for bankrupt foreign company---By not disclosing factum as to the bankruptcy petition and bankruptcy order against foreign company in the accounts of company of appellants, material information was concealed---High Court declined to interfere in concurrent orders passed by SECP as by not disclosing factum as to bankruptcy proceedings and order against subsidiary, appellants concealed vital information in its accounts for periods in question and therefore, rendered themselves liable to imposition of penalty under S. 492 of Companies Ordinance, 1984---Appeal was dismissed in circumstances. JUDGMENT MIANGUL HASSAN AURANGZEB, J.---Through the instant appeal, the appellants, impugn the order dated 28.09.2016 passed by respondent No. 1 (Appellate Bench, Securities and Exchange Commission of Pakistan) dismissing their appeal under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 against the order dated 11.05.2016 passed by respondent No.2 (Executive Director,…

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