Law: Companies Ordinance, 1984

Section: 158

Companies Ordinance (XLVII of 1984)---Ss. 158, 245 & 246---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33---Imposition of penalties---Appellants who were Chief Executives of Companies concerned, were imposed penalties in their individual capacities for violating provisions of Ss. 158,245 & 246 of Companies Ordinance, 1984 after giving them opportunity of hearing by the Executive Director---In one case appellants had failed to hold Annual General Meeting for the calendar year by specified date and in other two cases appellants had failed to prepare and transit quarterly accounts for relevant years up to specified dates---On date of hearing of appeal appellants dilated upon financial problems faced by concerned Companies and contended that financial constraints were the real reason behind their defaults and no wilful intention was on part of Managements to commit statutory defaults-Validity--Financial constraints could not be allowed to become an excuse for violating law---Companies and their Managements, including appellants were very much aware of their responsibility under the law and being listed companies said responsibilities took the added meaning and consequence---Contention of appellants that defaults were not wilful, were repelled---Executive Director had already taken a lenient view because of financial positions of companies and had not penalized all Directors, but had imposed token penalties on appellants in their individual capacities which were to be borne by them and not the shareholders of the Companies---No reason having been shown to interfere with orders of Executive Director imposing penalties on appellants, appeals were dismissed. ORDER Brig. (Retd) N. Humayune ("appellant") has filed 3 Appeals Nos. 30, 54 and 55 of 2003 under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 against three (3) orders, all dated June 27, 2003 passed by Executive Director (Enforcement and Monitoring). As the cases are interlinked, we intend to dispose them off through this single order. 1. The Appellant had initially filed an appeal in August, 2003 before the Appellate Bench Registry. However, as the…

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