ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP)while taking notice of mis-statements filed by an insurance company under Companies Ordinance, 1984 (Ordinance) has warned the company’s top brass to avoid such misstatements in the future.
The SECP has issued an official order about the matter here the other day. The order has disposed of the proceedings initiated against an insurance company for making material misstatement in the statement under Section 160(1)(b) of the Companies Ordinance, 1984 (the “Ordinance”) annexed to the notice of the Extra Ordinary General Meeting of August 27, 2013.
The SECP had received an application from the Company for grant of approval for issuance of right shares at a discount of Rs 4 per share, vide the Company’s letter dated September 9, 2013. The above-mentioned application was accompanied by certain documents and information, which amongst others, included the Notice of the Extra Ordinary General Meeting (EOGM), which was held on August 27, 2013 and had many mis-statements.
The SECP carefully examined and given due consideration to the written and verbal submissions of the Company, its Directors and the Management of the Company, and have also referred to the provisions of the Ordinance. There has been an established misstatement in the statement under Section 160(1)(b)of the Ordinance appertaining to the notice of the Extra Ordinary General Meeting, which was held on August 27,2013, the SECP said. The SECP said that the misstatement in statement under Section 160(1)(b) of the Ordinance is established and admitted by the Company’s administration. Therefore, the penalty as provided under Section 492 of the Ordinance can be imposed onto the Company’s Directors and the Chief Executive Officer.
