| Case ID |
099343a8-5a24-408c-aad8-ba6b7408610a |
| Body |
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| Case Number |
C.O. No. 1 of 2014 |
| Decision Date |
Nov 30, 2015 |
| Hearing Date |
Aug 27, 2015 |
| Decision |
The Islamabad High Court ruled in favor of the petitioner, INAM ULLAH KHAN, finding that the conduct of the respondents constituted oppression under Section 290 of the Companies Ordinance, 1984. The court determined that the respondents had acted in a manner that was burdensome, harsh, and unjust, which violated the principles of fair dealing expected in corporate governance. The court set aside the resolutions passed during the Extra Ordinary General Meeting and ordered a new meeting to be convened under the supervision of the Securities Exchange Commission of Pakistan to ensure compliance with legal requirements and fair treatment of shareholders. |
| Summary |
This case revolves around the allegations of oppression under the Companies Ordinance, 1984. INAM ULLAH KHAN, a 50% shareholder in AKSA Solutions Development Services (PVT.) LTD., filed a petition against the majority shareholders for actions that he claimed were oppressive and unjust. The court examined the conduct of the majority shareholders, particularly their decision to increase the company's authorized capital without proper notice and in the absence of the petitioner. The ruling emphasized the importance of fair dealing and the fiduciary duties of directors towards minority shareholders. The case highlights key issues such as corporate governance, shareholder rights, and the legal remedies available under the Companies Ordinance. The court's decision underscores the need for transparency and accountability in corporate actions, ensuring that all shareholders are treated equitably. This case serves as a significant precedent in the realm of corporate law, particularly concerning the protection of minority shareholders against oppressive actions by majority stakeholders. |
| Court |
Islamabad High Court
|
| Entities Involved |
AKSA SOLUTIONS DEVELOPMENT SERVICES (PVT.) LTD.
|
| Judges |
ATHAR MINALLAH, JUSTICE
|
| Lawyers |
Babar Sattar,
Mrs. Rahat Kaunain Hassan
|
| Petitioners |
INAM ULLAH KHAN
|
| Respondents |
AKSA SOLUTIONS DEVELOPMENT SERVICES (PVT.) LTD.
|
| Citations |
2019 SLD 872,
2019 CLD 355
|
| Other Citations |
Taj Woolen Mills Ltd. v. Muhammad Younas PLD 1982 Lah. 664,
Muhammad Rafiq Moti v. Pakistan PLD 1983 Kar. 589,
Naseer A. Sheikh v. The Commissioner of Income Tax (Investigation) PLD 1992 SC 276,
Mathalone and others v. Bombay Life Assurance Co. AIR 1953 SC 385,
Nanalal Zaver v. The Bombay Life Assurance Co. AIR 1949 Bombay 56,
Neelofar Shah v. Ofspace Pvt. Ltd. 2013 CLD 114,
Ch. Muhammad Hussain v. Khaali Paper and Board Mills 2005 CLC 636,
National Bank of Pakistan v. Balochistan Wheels Ltd. 2004 CLD 1100,
Associated Biscuits International Ltd. v. English Manufacturers Ltd. 2003 CLD 815,
Contract Act by Shaukat Mahmood, 7th Edition,
Chitty on Contracts, 24th Edition, Volume I: General Principles,
Shahbazud Din v. Services Industries PLD 1988 Lah. 1,
Needle Industries India Ltd. v. Needle Industries Newey (India) AIR 1981 SC 1298,
Messrs Shaheen Foundation v. Capital F.M. Ltd. 2002 CLD 188,
Nanamuddin Zia v. Asma Qamar 2013 CLD 1263,
Registrar of Companies v. Pakistan Industrial and Commercial Leasing Ltd. 2005 CLD 463
|
| Laws Involved |
Companies Ordinance, 1984
|
| Sections |
196,
290,
291,
292
|