Law: Companies Ordinance, 1984

Section: 245

Companies Ordinance (XLVII of 1984)--S. 245---Securities and Exchange Commission of Pakistan Act (XLII of 1997), S.33---Failure to prepare and transmit quarterly accounts---Imposition of penalty---Appeal to the Appellate Bench of the Commission---Company, in terms of the provisions of S.245(1) of the Companies Ordinance, 1984 was required to prepare and transmit its quarterly accounts, respectively to the shareholders Stock Exchange, Registrar and the Commission within prescribed period had failed to so---Commissioner taking lenient view and instead of imposing maximum penalty of Rs.100,000 on each Director of the company, imposed Rs.60,000 on each Director and Rs.100,000 on the Chief Executive---Validity---Representative of the Directors, admitted default, but had pleaded that lenient view could be taken by reducing the penalties---Representative informed the Appellate Bench that the company ceased its operations and was in the process of voluntarily winding-up and that the company had no assets and that under the present circumstances, could not pay the penalties to the Commission---Held, Directors of the company were responsible for preparation and circulation of the quarterly accounts in order to provide timely information to all stakeholders and they could not be let off scot free for having failed to provide necessary information within prescribed time---Recurrence of default had shown that Directors of the company did not make serious efforts to comply with the provisions of the Companies Ordinance, 1984---Penalties had been imposed on the Chief Executive and Directors in their personal capacity and they were directed to deposit the penalties from their own resources and not from the coffers of the company---Penalty to the extent of deceased Director was set aside and other Directors and Chief Executive, were directed to deposit the fine within 15 days. ORDER S. TARIQ ASAF HUSAIN, COMMISSIONER (LD)---This order shall dispose of Appeal No.60-A, 60-B, 60-C, 60-D and 70 of 2006 filed under section 33 of the Securities and Exchange Commission of Pakistan (the "Commission") Act, 1997 against:- a) the order dated 26-8-2004 passed by the respondent (Appeal…

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