| Case ID |
2096d603-9940-4aa7-a432-1af31dfed4a3 |
| Body |
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| Case Number |
EMD/233/373/2002-3094 |
| Decision Date |
Aug 13, 2009 |
| Hearing Date |
Jul 06, 2009 |
| Decision |
The Securities and Exchange Commission of Pakistan found the directors of Dandot Cement Company Ltd. liable for failing to transfer provident fund contributions to the trust as required under section 227 of the Companies Ordinance, 1984. The Commission noted that the contributions collected from employees were trust money and must be paid within the stipulated time. Despite the company's claims of financial difficulties, the directors were held accountable for their non-compliance with the law and ordered to pay penalties under sections 229 and 495 of the Ordinance. However, considering the company's financial condition, the Commission decided to impose a lenient penalty instead of the maximum fine. The directors were required to pay a total of 245,000 PKR in fines and to ensure that all outstanding liabilities towards the provident fund were settled in installments. |
| Summary |
In a significant ruling, the Securities and Exchange Commission of Pakistan addressed the non-compliance of Dandot Cement Company Ltd. regarding the transfer of provident fund contributions. The case highlighted the importance of adhering to the Companies Ordinance, 1984, particularly section 227, which mandates timely payments to protect employee funds. The decision emphasized that contributions are considered trust money and must be handled with utmost care. The Commission recognized the company's financial struggles but maintained that directors cannot neglect their legal obligations. As a result, penalties were imposed, but a lenient approach was adopted given the circumstances. This case serves as a critical reminder for companies to prioritize compliance with financial regulations, ensuring the protection of employee assets and maintaining trust in corporate governance. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Dandot Cement Company Ltd.,
Ali Azeem Ikram
|
| Judges |
Ali Azeem Ikram
|
| Lawyers |
Not available
|
| Petitioners |
Not available
|
| Respondents |
Dandot Cement Company Ltd.
|
| Citations |
2010 SLD 2611,
2010 CLD 60
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Ordinance, 1984
|
| Sections |
227,
229,
476,
495
|