ISLAMABAD, Dec 10: The Securities and Exchange Commission of Pakistan (SECP) has directed Adamjee Insurance Company Limited (AICL) to hold its overdue election of their directors within 40 days, according to official source.

The term of existing board of directors expired on June 29, 2002, because of a dispute between AICL and Muslim Commercial Bank Ltd. etc., in the Sindh High Court.

The last hurdle in this connection was removed following the decision by a division bench of Sindh High Court comprising Mr Justice Saiyed Saeed Ashhad, C.J., and Mr Justice Ghulam Rabbani.

By its decision, according to SECP press release here on Tuesday, the division bench set aside the order passed by single judge of the same court, Mr Justice Mushir Alam, whereby Muslim Commercial Bank (MCB), its directors, MCB-Employees’ Pension and Provident Funds were restrained from exercising any rights to interfere in the management of, or, to exercise their rights, to elect the directors of AICL.

The order had been passed by the learned judge on a suit filed against MCB by AICL and its three directors. The learned single judge in his order of August 22, 2002, while restraining MCB and others to seek election on the Board of Directors of AICL, had also made some adverse observations on the SECP as well as the State Bank of Pakistan.

The division bench of SHC, while setting aside the said order, also expunged the remarks/observations of the learned single judge against SECP and SBP.

In its order, the division bench observed, “From the facts on record, we find that these adverse observations/remarks were uncalled for as neither SECP nor SBP allowed commission of any irregularity nor had attempted to avoid responsibility to assist the court.”

Following this order, the Adamjee Insurance Company Limited has now been directed by SECP to elect new board of directors without delay.