August 26, 2003	Tuesday	Jumadi-us-Sani 27, 1424

ISLAMABAD, Aug 25: The Securities and Exchange Commission (SECP) has imposed penalties on six directors, including the chief executive of Pakistan PVC Limited, a public listed company, for their failure to disclose the requisite information to the stakeholders while seeking approval for disposing of sizable part of the company’s fixed assets.

Such disclosure, according to official source, was mandatory under section 160 of the Companies Ordinance, 1984.

In accordance with its policy of closely monitoring compliance with the rules, the SECP carried out a detailed examination of the annual accounts of Pakistan PVC Limited for the year ended June 30, 2001.

It was observed from the notice of 38th annual general meeting held on December 31, 2001, that the company management had sought the approval of shareholders to the disposal of its caustic soda plant.

As this was a special business, therefore, a statement of material facts was required to be annexed to the notice of the meeting. The company, however, failed to append the said statements with the notice of the meeting, thus depriving the shareholders of their rights to full information about the proposed disposal of caustic soda plant.

Show-cause proceedings were initiated against the directors and CE of the company and penalties imposed for violation of mandatory requirements of the company law.

By another order, the SECP has penalized the chief executive and directors of Quality Steel Mills Limited, a public listed company, for withholding the information required under the company law from its stakeholders while seeking approval for disposing of its immovable property.

QUARTERLY ACCOUNTS: The Securities and Exchange Commission of Pakistan (SECP) on Monday penalized directors of nine listed companies for their failure to prepare and circulate quarterly accounts in accordance with the legal requirements.

The SECP, it may be noted, has made it compulsory for the listed companies to submit their quarterly accounts within one month of the close of their first and third quarter of year of accounts.

The companies, which were issued show-cause notices and fines imposed on the chief executive and directors, include: Zahoor Textile Limited; Regal Ceramics Limited; Ghulam Muhammad Dadabhoy Limited; Apollo Textile Limited; Pakistan PVC Limited; MacDonald Layton and Company Limited; Wali Oil Mills Limited; Abbas Engineering Limited; and Khyber Tobacco Limited.