Law: Companies Ordinance, 1984

Section: 245

Companies Ordinance (XLVII of 1984)--Ss. 245 & 476---Failure to prepare and transmit quarterly accounts---Imposition of penalty---Company in terms of provisions of S.245 of Companies Ordinance, 1984 was required to prepare and transmit to the members and simultaneously file with the Registrar and the Commission its quarterly accounts, but company had failed to comply with said mandatory requirements within prescribed time---In response to show-cause notice, representative of Directors of Company could not justify said default---If Company was lying vacant as claimed by Directors of Company, same was not a cogent reason to justify default---Directors of the Company could have refrained from committing said default as it was all the more easy for them when Company was not functioning, to have prepared and transmitted quarterly account to the shareholders---It was duty of Directors to ensure compliance with all the statutory requirements, but they failed to do that wilfully and intentionally---Track record of the Company with regard to filing of quarterly/half yearly accounts, was also unsatisfactory as it failed to file accounts within prescribed time since 2001 for which Directors were penalized earlier also---Protection of investors/share-holders was one of the primary objectives of Companies Ordinance, 1984 and their interest was protected by transmission of timely, adequate and meaningful information to them; it was annual and interim accounts which could provide it formation to (hem about affairs of the Company, but Chief Executive and Directors of the Company had failed to protect said interest of investors/share-holders---Such state of affairs was a cause of great concern for the Commission---Repetition of default had clearly shown that Company was not making any serious efforts to comply with provisions of law---Default of company having stood established it was liable to be imposed fine2--However, instead of imposing maximum fine of Rs.100,000 on every Director and fine of Rs.1000 per day for continuous default, penalty of Rs.10,000, was imposed on Chief Executive and each Director of Company. ORDER DR. SAJID QURESHI (EXECUTIVE DIRECTOR).---This…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492