ISLAMABAD, July 17: The Securities and Exchange Commission of Pakistan (SECP) has decided to initiate proceedings in relevant high courts for the liquidation of 19 listed companies, which were found to be practically defunct for the past 5-10 years.

These were among the 24 companies that have not held annual general meetings within the prescribed time, SECP chairman Abdul Rehman Qureshi told a press conference here on Thursday.

In order to protect rights of investors and creditors, he said, it was the Commission’s policy to ensure that AGMs of the companies were held on time and that their audited accounts were presented therein according to statutory requirements of the Companies Ordinance 1984.

The ordinance also requires that in case of default in holding any two consecutive AGMs, the company is liable to be wound up by the court on a petition filed by the SECP through its Registrar of Companies.

While examining cases of 706 listed companies, it was observed that 24 companies are practically defunct and their managements are not keeping the shareholders aware about the affairs of these companies.

Accordingly, the SECP had issued show-cause notices to the managements of these companies. Five of these companies had subsequently informed the Commission that they were in the process of resolving their financial problems with creditors, banks/financial institutions and that it was likely that they would be revived.

The SECP has, therefore, directed the relevant staff to start proceedings for winding up following 19 companies: Saif Nadeem Kawasaki Motors Limited, Peshawar; Taxila Engineering Limited, Peshawar; Bahawalpur Textile Mills Limited, Karachi; Valika Woolen Mills Limited, Karachi; Azmat Textile Mills Limited, Karachi; Pakistan Northern Insurance Company Ltd, Karachi; Awan Textile Mills Ltd, Lahore; Tawakkal Ltd, Karachi; Tawakkal Polyester Industries Ltd, Peshawar; Myfip Video Industries Ltd, Karachi; Norrie Textile Mills Ltd, Karachi; Pakistan Dairies Ltd, Lahore; Tawakkal Garments Industries Ltd, Karachi; Alif Textile Industries Ltd, Karachi; Schon Textile Mills Ltd, Karachi; Apex Fabrics Ltd, Karachi; Kaisar Arts and Krafts Ltd, Karachi; Sterling Insurance Company Ltd, Lahore; and Mehran Jute Mills Ltd, Karachi.