Law: Companies Ordinance, 1984

Section: 170

Companies Ordinance (XLVII of 1984)--Ss. 170, 171, 305 & 476---Default in holding meetings--Imposition of penalty---Proceedings were initiated against company and its Directors for default made in complying with provisions of S.171, Companies Ordinance, 1984---Company, in terms of provisions of subsection (1) of S.158 of Companies Ordinance. 1984, was required to hold its Annual General Meeting but it failed to hold such meeting---Enforcement Department of the Commission passed order against the company for non-holding of Annual General Meeting on the ground that any violation of Take-over Ordinance, would not allow the company and its Directors to postpone Annual General Meeting---Non-holding of Annual General Meeting had deprived share-holders to exercise their powers envisaged in the Statute---Distress of share-holders required redressal and company was directed by the Commission under 5.170 of Companies Ordinance, 1984 to hold Annual General Meeting within thirty days of the issuance of direction---Annual General Meeting of an organization was a forum where the Board, Executives and share-holders were all in attendance for deliberating the important affairs of the company---Such meeting is a forum at which management of the Company lays annual accounts and appraise share-holders and if required, various powers are also exercised---Such were fundamental requisites which necessitated holding of Annual General Meeting in the given time-frame-Directions of the Commission issued under S.170 of Companies Ordinance, 1984 to hold Annual General Meeting were not complied with by the Company---Commission vide a letter asked the company to explain its position with regard to said directions but company neither responded back nor complied with the directions---Effect---Chief Executive of the Company was responsible for not complying with direction of Commission to hold Annual General Meeting in the prescribed time---Default in holding Annual General Meeting having established, Commission in exercise of powers conferred upon it, under Ss. 171 & 476 of Companies Ordinance, 1984 imposed fine of Rs.33,200 on Chief Executive---Since company had not held two…

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