Law: Companies Ordinance, 1984

Section: 208

Securities and Exchange Commission of Pakistan Act (XLII of 1997)--S. 33---Companies Ordinance (XLVII of 1984), Ss. 208 & 472--- Unauthorized investment in associated undertaking---Annual audited accounts for the relevant years of the company showed that company made unauthorized investment in its associated undertaking---Company submitted reply to show-cause notice issued to it---Counsel for the company admitted default and assured that default of non-compliance with mandatory provisions of S.208 of the Companies Ordinance, 1984 would be ratified within 25 days; and requested that a lenient view could be taken---Commission vide impugned order imposed a penalty of Rs.300,000 on each Director of the company; in addition Commission further directed the company under S.472 of the Companies Ordinance, 1984 to make good the default and recover the unauthorized investments; and to remove the irregularities made in the investments---Company was in violation of S.208(1) of the Companies Ordinance, 1984 for failing to pass special resolution indicating the nature, period and amount of investment; and the terms and conditions under which the investment was made---Counsel for appellant company had confirmed in writing that directions of the Commission in the impugned order regarding return of investments, had been complied with, which fact had also been confirmed by the representatives of the Commission---Commission while passing the impugned order had gone beyond the ambit of show-cause notice and penalty was also imposed on transaction regarding which investments were returned in compliance with the direction of the Commission---Company having complied with the direction of the Commission, taking lenient view penalty was reduced from Rs.300,000 to Rs.100,000 on each Director of the company. ORDER This order shall dispose of Appeal No.20 of 2006 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 against the order dated 23-12-2005 (the "Impugned Order") passed by the respondent. 2. On the examination of annual audited accounts for the year ended 30-6-2005 (the "Accounts") of Pakistan Telephone Cables Limited (the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492