ISLAMABAD, Nov 12: Securities and Exchange Commission of Pakistan has restrained Dreamworld Limited from passing a resolution in its Annual General Meeting (AGM) to make investment amounting to Rs32 million in Shafiq Textile Mills Limited, an associated undertaking, says an SECP announcement.

As a result, it was further stated, the SECP was able to protect the investment of minority shareholders of Dreamworld Limited.

Dreamworld, the SECP source explained, had published the notice of the AGM in the newspaper, which included aforesaid special business in the agenda. Upon examination of the notice and statement of material facts annexed to the notice of meeting under Clause (b) of sub-section (1) of Section 160, the SECP observed that notice of the meeting was not in accordance with the requirements of the law as well as SRO 865(I)/2000 dated December 6, 2000.

Interestingly, the SECP noted, the associated company to which Dreamworld Limited intended to funnel a huge amount had sold off all its plant and machinery, was not in operation ever since August 1998 and had negative equity.

In view of these facts, the SECP concluded that passing of the proposed resolution relating to investment in Shafiq Textile Mills would be against the interest of the company and its shareholders, besides being contrary to the spirit of provisions of the Companies Ordinance, 1984.

According to SECP source, Dreamworld had since acceded to its directive and the proposed resolution was withdrawn from the agenda of the AGM.