| Case ID |
38b811cd-2d57-454d-9d60-d8d7cf99719d |
| Body |
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| Case Number |
Appeal No. 39 of 2014 |
| Decision Date |
Feb 19, 2015 |
| Hearing Date |
Feb 06, 2015 |
| Decision |
The appeal was against the imposition of a penalty for the failure to disclose the remuneration of the Chief Executive and Directors in the Directors' Report as required under section 218 of the Companies Ordinance, 1984. The Appellants accepted their default but argued for a warning instead of a penalty, citing that the Company was a public limited unlisted entity with all shares owned by family members. The Commission held that the violation was significant and the responsibilities for compliance lay with the management of the Company. The penalty was upheld as the Appellants could not shift the responsibility to the Chartered Accountant. Therefore, the Commission found no grounds to interfere with the Impugned Order. |
| Summary |
In this case, the Securities and Exchange Commission of Pakistan dealt with an appeal regarding the failure of Pak Chromical Limited to disclose the remuneration of its Chief Executive and Directors in compliance with the Companies Ordinance, 1984. The case highlights the importance of transparency and compliance with corporate governance regulations. The Commission emphasized that even in a family-owned public limited unlisted company, the management holds the ultimate responsibility to ensure adherence to legal requirements. The decision reinforces the principle that statutory obligations cannot be overlooked, and penalties can be imposed for non-compliance. This case serves as a reminder for companies to prioritize legal compliance to avoid penalties and maintain integrity in financial reporting. |
| Court |
Securities and Exchange Commission of Pakistan
|
| Entities Involved |
Securities and Exchange Commission of Pakistan,
Pak Chromical Limited
|
| Judges |
Zafar Abdullah, Commissioner (SMD),
Fida Hussain Samoo, Commissioner (Insurance)
|
| Lawyers |
Maqsood Raza, Authorised Representative
|
| Petitioners |
,
Maqsood Elahi, CEO/Director/Company Secretary
|
| Respondents |
Head of Department (Enforcement), Securities And Exchange Commission Of Pakistan,
Ms. Amina Aziz, Director (Enforcement),
Shafiq-ur-Rehman, Deputy Director (Enforcement)
|
| Citations |
2017 SLD 1475,
2017 CLD 767
|
| Other Citations |
Not available
|
| Laws Involved |
Companies Ordinance, 1984
|
| Sections |
218,
242,
476
|