| Case ID |
0887979a-467c-4806-8128-49ae4b7e0123 |
| Body |
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| Case Number |
Show Cause Notice No. EMD/233/404/2002-755-61 |
| Decision Date |
Jul 17, 2007 |
| Hearing Date |
Jun 21, 2007 |
| Decision |
The Securities and Exchange Commission of Pakistan imposed penalties on the Chief Executive and Directors of Kohinoor Power Company Limited for unauthorized investments made in an associated company, Kohinoor Industries Limited, without shareholder approval. Despite repeated directives, the company failed to comply with the Commission's orders, leading to a penalty of Rs. 50,000 on each director. The Commission emphasized the need for strict adherence to legal requirements and warned the directors to ensure compliance in the future. The decision reflects the Commission's commitment to uphold the integrity of corporate governance and protect shareholder interests. |
| Summary |
This case revolves around the Securities and Exchange Commission of Pakistan's enforcement actions against Kohinoor Power Company Limited for breaching the Companies Ordinance, 1984. The Chief Executive and Directors were found guilty of making unauthorized investments in Kohinoor Industries Limited without obtaining necessary approvals from shareholders. The Commission's order highlighted the fiduciary duties of directors to act in the best interests of shareholders and comply with statutory obligations. The case underscores the importance of corporate governance and regulatory compliance in Pakistan's business environment. Key aspects included the financial implications of non-compliance, the responsibility of directors, and the need for transparent financial practices. The decision serves as a precedent for similar cases, reinforcing legal accountability in corporate affairs. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Kohinoor Industries Limited,
Kohinoor Power Company Limited
|
| Judges |
Tahir Mahmood
|
| Lawyers |
Not available
|
| Petitioners |
Not available
|
| Respondents |
Messrs Kohinoor Power Company Limited,
Mr. M. Naseem Saigol,
Mr. Azam Saigol,
Mr. Shahid Sethi,
Mr. Muhammad Omer Farooq,
Mr. Rashid Ahmad Javaid,
Mr. Muhammad Athar Rafiq,
Mr. Muhammad Asif Bajwa
|
| Citations |
2007 SLD 2762,
2007 CLD 1491
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Ordinance, 1984
|
| Sections |
208,
476,
495(1)
|