| Case ID |
156e361d-406b-455b-b225-1f89837d7754 |
| Body |
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| Case Number |
|
| Decision Date |
Mar 25, 2008 |
| Hearing Date |
Mar 12, 2008 |
| Decision |
The case involved Mustehkam Cement Limited, which failed to comply with the mandatory requirements of the Companies Ordinance, 1984, by not annexing necessary documents to their annual and quarterly accounts. The counsel admitted the default and assured future compliance. Considering these factors, instead of imposing a penalty of Rs.5,000 on each Director, a lenient penalty of Rs.5,000 was imposed on the Chief Executive, Mr. Zameer Muhammad Chaudhry, who is required to pay the fine within thirty days. This decision reflects the emphasis on compliance and accountability while recognizing the commitment to rectify the oversight. |
| Summary |
In the case concerning Mustehkam Cement Limited, the Securities and Exchange Commission of Pakistan addressed significant compliance failures under the Companies Ordinance, 1984. The company neglected to annex key documents required by law with their annual accounts for the year ending June 30, 2007, including the Directors' Report and corporate information. Legal counsel for the company acknowledged these oversights and requested leniency based on a commitment to adhere to legal requirements in the future. The Executive Director, TAHIR MAHMOOD, ultimately decided to impose a reduced penalty on the Chief Executive of the company rather than on each Director, highlighting the importance of compliance while allowing for corrective measures going forward. This case underscores the critical nature of corporate governance and the responsibilities of directors in ensuring compliance with statutory requirements. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Mustehkam Cement Limited
|
| Judges |
TAHIR MAHMOOD, EXECUTIVE DIRECTOR (ENFORCEMENT)
|
| Lawyers |
Muhammad Javed Panni
|
| Petitioners |
Not available
|
| Respondents |
Mustehkam Cement Limited
|
| Citations |
2008 SLD 395,
2008 CLD 627
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Ordinance, 1984
|
| Sections |
233,
244,
245,
476
|