Law: Companies Ordinance, 1984

Section: 76,77,78,78A

Companies Ordinance (XLVII of 1984)---Ss. 76, 77, 78 & 78-A---Request for transfer of shares---Refusal of such transfer---Appeal---Appellant who purchased shares sifter making payment against them in US Dollars, requested the Registrar to direct the company to transfer the shares in his name, but Share Registrar vide its letter refused the transfer of shares on behalf of the company without notifying any defect or invalidity---Taking into consideration Articles of Association of the company; scheme of law as enunciated in Ss. 77 & 78 of the Companies Ordinance, 1984, it could be considered that the law did not give discretionary powers to the Directors to refuse any shares---Directors must have regard to any those considerations which the Articles of Association or provisions of law on their true construction permit them to consider---Any refusal based on extraneous or other consideration, was totally unjustified---Shareholders were free to transfer their shares subject to restrictions contained in Articles of Association---However, no such restrictions were provided in the Articles of Association--Articles of Association did not restrict transfer of shares by any of the shareholders to any person including the appellant, but it imposed bar on sale of assets of the company and the shares could not be termed as assets of the company---Representative of the respondent was advised to convey the observation of the Bank within a week's time, which he failed to do so---Appeal was accepted and appellant was advised to re-lodge transfer of shares and the Directors of the company was directed to register transfer of the shares within fifteen days thereof. ORDER (Under section 41(1) read with section 11(1)(d) and section 156 of The Insurance Ordinance, 2000) NAZIR AHMED SHAHEEN, EXECUTIVE DIRECTOR (REGISTRATION).---This Order shall dispose of the proceedings initiated against Messrs Pak Panther Spinning Mills Limited (the "Company") on the appeal of Dr. Mahboob Hasan Rana, resident of Z-938/2. Phase III, Defence Housing Authority. Lahore (the "Appellant") under the provisions of section 78-A of the Companies Ordinance. 1984 (the "Ordinance"). 2. Brief facts of…

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