Law: Companies Ordinance, 1984

Section: 245

Companies Ordinance (XLVII of 1984)--Ss. 245 & 476---Failure to file quarterly accounts---Imposition of penalty---Company which was required under provisions of S.245 of Companies Ordinance, 1984 to prepare quarterly accounts for the relevant periods and transmit same to the members and simultaneously file same with' the Registrar and the Commission within prescribed period, show-cause notices were served on all Directors of the company including Chief Executive of the Company on their failure in performing such obligation---Counsel for the company, in response to said show-cause notice, appeared and stated that Chief Executive of the Company remained under arrest with the National Accountability Bureau for about three years as a result of which entire corporate activities of the company came to stand stilt; that after his release management was taking all the steps to meet the requirements of law and annual accounts were prepared, but could not be audited as the auditors -had resigned---Validity---Plea that Chief Executive of the company remained under arrest with the NAB, was not a cogent excuse for non filing and non-circulation of quarterly accounts, because the other Directors were equally responsible to ensure compliance of statutory provisions of law which were mandatory in nature---Even otherwise, it was easier for the Directors to finalize and circulate accounts when the company was not In operations as less effort was required for data compilation---Directors of the company, who had f ailed to file quarterly accounts with the Commission in time, had deprived the share-holders of their statutory right to receive the quarterly accounts in time---Even after release of Chief Executive, there was sufficient time with the company for preparation and circulation of quarterly accounts, but still they could not comply with the mandatory provisions of law--Company and its Directors including Chief Executive, in circumstances had wilfully and deliberately committed the defaults in preparation, circulation and filing of quarterly accounts---Fact that company had made efforts in preparation of its annual accounts and had held Annual General Meetings having…

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