Law: Companies Ordinance, 1984

Section: 305

Companies Ordinance (XLVII of 1984)--S.305 Winding up of company Administration of justice ¬Interests of labour working in factory of Company Office of Company was situated in one Province whereas the factory was located in other Province Publication was not made in newspapers having circulation in the area where the factory was located Effect Where the Company's debts/ liabilities were in excess of its assets and that it was not in production any more, High Court was of the opinion that it was just and equitable to wind up the Company High .Court in the interest of justice and for the specific purpose of catering to the interest of the labour of the factory passed order for republication in the newspapers having circulation in the Province where the factory was located To save the interest of the Company, Official Assignee was appointed as Provisional Manager Petition for winding up was adjourned for further action. ORDER Learned counsel for the petitioner submits that on perusal of the Company's Financial Statements it would be adequately established that it is running in a loss and unable to pay its debts as per the list attached as Annexure G/ 1 which is in the total amount of Rs.358.8 millions. Learned counsel further submits that the Company has not been in production for more than one year and it is not a viable concern any more since massive capital infusions would be required to run the concern. Consequently learned counsel submits that under section 305 (h) of the Companies Ordinance it would be just and equitable to wind up the Company. Mr. A.H. Mirza says that his only objection is that no Resolution was passed by the Company in a General Meeting and consequently the requirement under section 305(A) has not been fulfilled. Mr. S. Saleemuddin Nasir for the Objectors HBL and ABL also supports Mr. A.H. Mirza in this regard. I have heard learned counsel. Upon perusal of the petition and Annexures filed alongwith it, it appears that the Company's debts/liabilities are far in…

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