LAHORE, July 17: The Lahore High Court decided on Wednesday to convene a meeting of Taj Company depositors to consider a scheme for revival of the company and satisfaction of the depositors’ claim to the extent of 20 per cent.
The meeting will be held within two months at the company’s registered office or any other convenient venue in Lahore. It will be arranged and presided over by a lawyer (Advocate Azmat Saeed), who will be paid Rs100,000 for the assignment. The scheme has been drawn up by another lawyer (Advocate Tariq Kamal Kazi). Notices will be sent to all the depositors at least 21 days before the meeting. Advertisements shall also be placed in newspapers.
The quorum for the meeting has been fixed at 100. The scheme must be approved by a majority of the depositors present and voting but representing 75 per cent of the stuck-up deposits. The depositors or their proxies will have to bring original documents or deposit slips.
The National Accountability Bureau counsel informed Justice Jawad S Khwaja, the LHC company judge seized of the matter, that the NAB had also prepared a scheme to salvage the company’s assets and satisfy the depositors’ claims and it was awaiting President Gen Pervez Musharraf’s approval. The judge said no final order was being passed and it would be in the fitness of things if the depositors’ views were elicited in the meanwhile. The matter would now come up for further proceedings in the first week of October.
Under the scheme, each depositor would be transferred one fully paid-up share of Rs 10 in the company against Rs50 of the stuck-up deposit. The ratio represents the gap between the company’s assets and liabilities. If the company were wound up today, its depositors would receive about 20 per cent of their investment provided a reasonable price was realized by sale of its assets and adequate amount was left after satisfying the claims of secured creditors.
The shares of existing shareholders would be cancelled and the new shareholders (depositors) would be entitled to elect a new management. The new shareholders would also be allowed to sell their shares.
BAIL FOR DIRECTORS: Meanwhile, the court allowed bail to Chaudhry Ali Muhammad and another former director of the company in the sum of Rs100,000 with two sureties in the like amounts each. They said they had already served out their three-year sentences and their appeals were pending adjudication.