Case ID |
366321e0-200f-4ede-b795-4521459131a5 |
Body |
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Case Number |
Appeal No.86 of 2006 |
Decision Date |
Jan 12, 2012 |
Hearing Date |
Nov 15, 2011 |
Decision |
The appeal was dismissed with the decision upholding the Impugned Order, which imposed a penalty of Rs.100,000 on the appellant for non-compliance with the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance. The Commission found that the transactions leading to the increase in shareholding were inter-family arrangements, and thus did not fall under the exemptions provided in the Ordinance. The appellant's argument regarding the nature of the share transfers was deemed insufficient, as the law requires disclosure upon reaching the threshold of 25% voting shares, regardless of the source of acquisition. The Commission concluded that the leniency shown in the penalty was appropriate given the circumstances. |
Summary |
This case revolves around the appeal filed by Rehan Ahmed, the Chief Executive Officer of Mubarak Textile Mills Limited, against the decision of the Securities and Exchange Commission of Pakistan regarding the increase in his company's shareholding. The Commission determined that the increase was due to inter-family transactions, which do not qualify for exemptions under the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance. The penalty imposed was significantly lenient compared to the maximum allowed, showcasing the Commission's discretion in enforcement. The case underscores the importance of compliance with disclosure requirements in corporate governance and the regulatory framework surrounding share acquisitions. Key terms include 'substantial acquisition', 'voting shares', and 'corporate compliance', which are essential for understanding the implications of this ruling on company directors and stakeholders. |
Court |
Securities and Exchange Commission of Pakistan
|
Entities Involved |
MUBARAK TEXTILE MILLS LIMITED
|
Judges |
TAHIR MAHMOOD, COMMISSION (CLD),
MOHAMMED ASIF ARIF, COMMISSIONER (INSURANCE)
|
Lawyers |
Faisal Latif, Chartered Accountant for Appellant,
Abid Hussain, Director for Respondent,
Aqeel A. Zeshan, Deputy Director for Respondent
|
Petitioners |
REHAN AHMED, CHIEF EXECUTIVE OFFICER, MUBARAK TEXTILE MILLS LIMITED
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Respondents |
COMMISSIONER (SMD)
|
Citations |
2012 SLD 983,
2012 CLD 873
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Other Citations |
Not available
|
Laws Involved |
Securities and Exchange Commission of Pakistan Act, (XLII of 1997),
Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Ordinance (CIII of 2002)
|
Sections |
33,
3,
4,
5,
7,
9,
13,
25,
26
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