ISLAMABAD, Feb 17: The Securities and Exchange Commission of Pakistan (SECP) has said it issued show-cause notices to 15 listed companies for violating various provisions of law in January.
It said these notices were issued to the companies for their failure to transfer shares, hold annual general meetings, circulate quarterly accounts, misuse of employees' provident funds, failure to give proper reports by the auditors and non- submission of application for appointment of cost auditors.
A penalty of Rs10,000 was imposed on the chief executive and secretary of a company, as certain irregularities were observed in the appointment of directors in the firm.
Four companies were restrained from passing special resolutions which were contrary to the interest of the minority shareholders, while eight companies were advised to circulate revised notices of annual general meetings/extraordinary general meetings to shareholders as the information provided through the earlier notices was insufficient.
One company was directed to convene its overdue AGM for the calendar year 2004 and to present the audited accounts before the shareholders. A company and its auditor were warned against violations in their annual accounts regarding compliance with the International Accounting Standards and fourth schedule to the Companies Ordinance 1984.
A warning was also issued to a company which subsequently made good the default in submission of the audit report to the SEC. As many as 93 out of the 140 complaints of investors were resolved whereas comments on the remaining 47 complaints were called for from the companies concerned.
These complaints mainly related to non-receipt of dividend warrants, non-encashment of dividend warrants, delay/non-transfer of shares and issuance of duplicate shares, non-receipt of annual and interim accounts and wrongful deduction of Zakat.
One company was granted permission for conversion of debt amounting to Rs15.283 billion into equity and another was allowed to issue 15 million ordinary shares to the public.
Twelve companies were allowed to place their quarterly accounts on their websites after they fulfilled the requirements of the SEC. Technical clarifications were provided on four issues to different quarters.
