Law: Companies Ordinance, 1984

Section: 158,476

Companies Ordinance (XLVII of 1984)---Ss. 158 & 476---Failure to hold Annual General Meeting---Imposition of penalty---Company which under S.158(1) of Companies Ordinance, 1984 was required to hold its Annual General Meeting within prescribed period, had failed to comply with said mandatory provision of law---Annual and interim accounts, which provided information to the investors about the affairs of the companies are laid in Annual General Meeting and such Meeting was a forum where the investors could freely discuss, speak and vote on important matters concerning approval of accounts, appointment of auditors, election of Directors etc.---Directors of the company were not observing said compulsory requirements of law and company had violated the provisions of S.158 of the Companies Ordinance, 1984---Penalty of Rs.500,000 on the company and all the Directors of the company, was imposed, in circumstances. ORDER ABID HUSSAIN, DIRECTOR (ENFORCEMENT).---This Order shall dispose of the proceedings initiated against the directors of Indus Fruit Products Limited (the "Company") for default made in complying with the provisions of subsection (1) of section 158 of the Companies Ordinance, 1984 (the "Ordinance"). 2. The facts leading to this case, briefly stated, are that in terms of the provisions of subsection (1) of section 158 of the Ordinance, the Company was required to hold its Annual General Meeting (the "AGM") for the year ended June 30, 2010 on or before October 31, 2010. The Company failed to hold the aforesaid AGM within the prescribed time period. The failure of the Company to comply with the aforesaid mandatory requirements necessitated action against the Company and its directors in terms of subsection (4) of section 158 of the Ordinance. Consequently, a show-cause notice dated November 22, 2010 ("SCN") was served on the Company and its directors including the Chief Executive calling upon them to show cause as to why penalties as provided under subsection (4) of section 158 read with section 476 of the Ordinance may not be imposed on them. The Chief Executive and other directors, however, did not respond to the aforesaid SCN. 3. In order to provide an…

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