Law: Companies Ordinance, 1984

Section: 158

Companies Ordinance (XLVII of 1984)--Ss. 158 & 476---Failure to hold Annual General Meeting by Company---Imposition of fine-Company which was required to hold its Annual General Meeting, had, jailed to hold same within prescribed time period---Show-cause notice was served on the Company and its Directors including the Chief Executive---Contention of Company was that non-holding of Annual General Meeting for relevant year, was neither wilful nor intentional, but due to closure of factory---Explanation furnished by the Company was not found satisfactory---Protection of investors/share holders was one of the primary objectives of Companies Ordinance, 1984---bwestors/share-holders who provided seed for capital formation, their interest was protected by transmission of timely, adequate and meaningful it formation to them and it was annual and interim accounts, winch could provide information to the investors about the affairs of the Company---Annual General Meeting was a forum where investors could freely speak, discuss and vote on important matters concerning approval of accounts, appointment of auditors, election of directors, etc.---Directors of Company had not observed said compulsory requirements of law; it could be legitimately inferred from such state of affairs that Chief Executive and Directors had failed to protect the interest of share-holders---Company had also committed default in filing of lral/ yearly and quarterly accounts in the past---Instead of imposing maximum fine of Rs.50,000 on the Company and every Director and a further fine of Rs.2,000 per day for continuous default, fine of Rs.10,000 was imposed on Chief Executive and on each Director, accordingly. ORDER TARIQ BAKHTAWAR, DIRECTOR ENFORCEMENT'.---This Order shall dispose of the proceedings initiated against Messrs Frontier Ceramics Limited (hereinafter referred to as the "Company") and its Directors 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…

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