ISLAMABAD, June 13: The Securities and Exchange Commission of Pakistan has decided to initiate proceedings for liquidation of 22 listed companies for their failure to hold annual meeting for the past several years and present their annual accounts therein, according to official.

Almost all of these companies are bank defaulters. They have suspended their business operations and are without any valid management.

The Commission has, therefore, decided to get rid of this “deadwood” after consultation with the Karachi Stock Exchange.

Under Section 305 (b) of the Companies Ordinance 1984, the official stated, a company, which failed to hold AGM for two consecutive years, was liable to be wound up. Many of these companies have not held AGM for the past three to 10 years.

Show-cause notices have been issued to these companies and winding up petitions would be filed in the relevant high court.

Explaining the procedure, he said, the company judge of a high court is empowered to appoint liquidator for each company. The law requires the liquidator to complete his/her work within one year. In case of failure to meet this deadline, a liquidator forfeits his/her salary, as per an amendment affected in the company law last year.

Asked about the interests of shareholders, the official said whatever assets of these companies are found would be distributed among shareholders.

Following are the companies sought to be liquidated by the SECP: Saif Nadeem Kawasaki Motors Ltd, Bahawalpur Textile Mills Ltd, Valika Woolen Mills Ltd, Azmat Textile Mills Ltd, Mubarak Dairies Ltd, Pakistan Northern Insurance Company Ltd, Awan Textile Mills Ltd, Tawakkal Ltd, Tawakkal Polyester Industries Ltd, Myfip Video Industries Ltd, Norrie Textile Mills Ltd, Pakistan Dairies Ltd, Tawakkal Garments Industries Ltd, Alif Textile Industries Ltd, Schon Textile Mills Ltd, Apex Fabrics Ltd, Kaisar Arts & Krafts Ltd, Orient Straw Board Ltd, Sterling Insurance Company Ltd, Mehran Jute Mills Ltd, Sindh Alkalis Ltd, and Dadabhoy Insurance Ltd.