Law: Companies Ordinance, 1984

Section: 224

Companies Ordinance (XLVII of 1984)--S. 224(2)---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.23(2)(d)---Gain made in sale and purchase transaction of shares---Failure to tender gain---Order to tender gain to the Commission---Corporation which gained by sale and purchase transaction of shares, having failed to tender said gain to issuer within period specified in S.224(2) of Companies Ordinance, 1984 the Commission after issuing show-cause notice to the corporation and granting opportunity of hearing, ordered to tender the gain to the Commission-Validity-Demand by issuer must be raised within six months of the date of accrual of gain---Once the demand was raised, issuer then had the remaining portion of the six months period or sixty days whichever was later, to recover the gain---Gain accrued in the case must become part of the Commission's fund being property of the Commission---Contention that the Commission should recover the gain for the benefit of issuer, was flawed and self-serving because the Commission, conceivably could not be saddled with the duty to act as a recovery mechanism for the benefit of private parties---Gain which had become the property of the Commission after the lapse of six months period front elate of accrual, could not be given to any party, including the issuer---Gain tendered to issuer after the Commission had raised the issue with the corporation, had indicated mala fides and in such circumstances, corporations contention that recovery should be made from the issuer, was quite devious and condemnable as no one could take advantage of his own wrong---Commission being duly authorized under law to initiate proceedings and issue show-cause notice, appeal against impugned order was dismissed. ORDER 1. This appeal has been filed by First Capital Securities Corporation Ltd. (the 'Appellant') under section 33 of the Securities and Exchange Commission of Pakistan Act, 1997 against an order dated 16-7-2004 (the 'Impugned Order') passed by Commissioner (Securities Market Division). 2. Brief facts of the case are that a notice dated 26-2-2004 was issued by the Commission to the appellant to show cause as to why the…

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