03-16-2004, 02:45 PM
Following is the decision of SHC,
The Sindh High Court (SHC) has suspended the directives of the Securities and Exchange Commission of Pakistan (SECP) with regard to the rotation of the external auditors of all listed companies every 5 years. Mr Justice Musheer Alam passed the order in a suit filed by A.F. Ferguson, Chartered Accountants, challenging the legality of the order of SECP through its lawyer Zahid F Ibrahim. The petitioner has contended that the SECP has no power to issue the said directive under section 34(4) of SEC ordinance and that the SECP transgressed the authority conferred by law. Moreover, it is contended in the petition that the SECP directive is in violation of the right of shareholders to select auditors of their choice under the companyâs ordinance, 1984. The SHC ordered "A prima facie case for suspension of the impugned directive dated 28.3.02 has been made out. Accordingly, operation of the impugned directive is suspended till next date".
SMR
The Sindh High Court (SHC) has suspended the directives of the Securities and Exchange Commission of Pakistan (SECP) with regard to the rotation of the external auditors of all listed companies every 5 years. Mr Justice Musheer Alam passed the order in a suit filed by A.F. Ferguson, Chartered Accountants, challenging the legality of the order of SECP through its lawyer Zahid F Ibrahim. The petitioner has contended that the SECP has no power to issue the said directive under section 34(4) of SEC ordinance and that the SECP transgressed the authority conferred by law. Moreover, it is contended in the petition that the SECP directive is in violation of the right of shareholders to select auditors of their choice under the companyâs ordinance, 1984. The SHC ordered "A prima facie case for suspension of the impugned directive dated 28.3.02 has been made out. Accordingly, operation of the impugned directive is suspended till next date".
SMR
