Law: Companies Ordinance, 1984

Section: 3

Companies Ordinance (XLVII of 1984)---Ss. 3(a) & 237---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33---Failure of the company to prepare and attach to its financial statements the consolidated financial statements of the group---Imposition of penalty---Company was holding more than 50% of voting shares' in nine companies---Company, which was a holding company, by virtue of holding such voting securities and power to elect and appoint more than 50% of its Directors as specified in S.3(a) of Companies Ordinance in violation of S.237 of the Ordinance, had failed to prepare and attach to its financial statements the consolidated financial statements of the group---Company, being holding company was to submit the consolidated financial statements in accordance with Fourth Schedule of the Companies Ordinance, 1984 and International Accounting Standard---Failure on the part of the company, could not be termed as bona fide as the law had imposed a duty on every officer of the company to comply with its requirements---Chief Executive and Directors of the company had a fiduciary relationship with the company---Fiduciary was required to have greater knowledge and expertise about the matters being handled---If the requirements of law on a particular matter were clear it was unacceptable for the fiduciary to claim that he was unaware of the requirements---Appellants by not complying with the requirements of S.237 of the Companies Ordinance, 1984, were in violation of the law and their inaction would be termed as recklessly careless---Penalties were rightly imposed on the appellants---Impugned order could not be interfered with, in circumstances. Shaikh Jalaluddin F.C.A. v. Commissioner (Enforcement and Monitoring) SEC 2005 CLD 333 ref. ORDER This order will dispose of Appeal No. 35 of 2010 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 against the order dated 25-6-2010 ("Impugned Order") passed by the respondent. 2. On examination of the annual accounts of Hashoo Holding (Pvt.) Ltd. (the "Company") for the year ended 30-6-2008 and 30-6-2009 (the "Accounts"), it transpired that the…

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