| Citation(s) |
|---|
| 2002 SLG 712 2002 SLD 712 2002 CLD 1150 |
Securities and Exchange Commission of Pakistan
hearing DATE : 8-01-2002
M. ZAFAR UL HAQ HIJAZI, COMMISSIONER (CL) SHAHID GHAFFAR, COMMISSIONER (SM)
Athar Minallah for Appellants. Ms. Irum Wahid Butt, Director (Leasing) alongwith Ms. Farrah Qamar Faiz, Joint Director for
Respondent
hearing DATE : 8-01-2002
M. ZAFAR UL HAQ HIJAZI, COMMISSIONER (CL) SHAHID GHAFFAR, COMMISSIONER (SM)
Athar Minallah for Appellants. Ms. Irum Wahid Butt, Director (Leasing) alongwith Ms. Farrah Qamar Faiz, Joint Director for
Respondent
Messrs NATIONAL ASSET LEASING CORPORATION LTD.
VS
EXECUTIVE DIRECTOR (SPECIALIZED COMPANIES DIVISION).
Law: Companies Ordinance, 1984
Section: 2(1)(15A),208
Law: Securities and Exchange Commission of Pakistan Act, (XLII of 1997)
Section: 33
(a) Companies Ordinance (XLVII of 1984)---S.208 Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33 Appeal before Appellate Bench of Security and Exchange Commission Investments by company in associated undertakings in deposit account and certificates of deposits Executive Director (SC) of the Security and Exchange Commission after considering reply to show cause notice concluded that such investments constituted 83.52% of the paid up capital plus free reserves of the company, thus, imposed fine on all its Directors ¬Contention of company was that said investment did not constitute investments in terms of Explanation to S.208(1) of Companies Ordinance, 1984 as the same was neither loan nor advance or equity, but was "deposit" Validity Such interpretation of the company could not be accepted as Explanation to S.208 of the Companies Ordinance qualified any amount, which was not in the nature of "normal trade credit" to be considered as investment. (b) Companies Ordinance (XLVII of 1984) Ss.2(1)(15 A) & 208 Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33 Appeal before Appellate Bench of Security and Exchange Commission Investments by company in its associated undertakings in violation of S.208 of Companies Ordinance, 1984 Executive Director (SC) of the Security and Exchange Commission for said violation imposed fine on all the Directors of the company Company claiming to be a financial institution pleaded that S.208 of Companies Ordinance, 1984 was not applicable to its case Validity ¬Only such financial institutions were exempt from application of S.208 of the Companies Ordinance, 1984 which were approved by Federal Government in terms of S.208(6)(b) of the Companies Ordinance Company in the present case, had never been notified as a financial institution in official Gazette, as such same did not qualify to be a financial institution for purpose of exemption provided under S.208 of Companies Ordinance, 1984. (c) Companies Ordinance (XLVII of 1984) S.208 Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33 Appeal to Appellate Bench of Security and Exchange Commission Investments in associated…
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