10-02-2009, 11:36 PM
Star
I could not explain my point of view, I guess. Let me do it again.
SO FAR section 90 does cover ordinary shares and preference shares ONLY since it has stipualted that such classes of shares have to be prescribed. It states that different rights and privileges in relation to the different classes of shares MAY ONLY BE CONFERRED IN SUCH MANNER AS MAY BE PRESCRIBED. Law always restrict its boundries by using these words.
I may be wrong but I have a determined view that section 90 restricts issuance of warrants, if these have not yet been prescribed.
You have agreed that there has nothing been prescribed about warrants in law. The only prescribed shares in company law are ordinary shares and preference shares therefore section 90 has utmost relevance to what I have tried to explain.
I am still of the view that unless and until law prescribes right and privilidges and proivide rules and guidance for issuance of warrants no company can issue warrants in Pakistan. This is the public money and regulators will never allow to collect and utilize it without or beyond the limited prescribed by the promulgated rules and regulations.
If it could be a case, why not every ABC or XYZ start collecting money from public in similar ways and what was the need for promulagting rules for commercial paper, TFCs, preference shares and for calling deposits from public etc.
It can be simply a difference of opinion but I wonder what SECP will opine if you post them a query to clarify this matter. If you do, and get a response, let us know as well.
Regards,
KAMRAN.
I could not explain my point of view, I guess. Let me do it again.
SO FAR section 90 does cover ordinary shares and preference shares ONLY since it has stipualted that such classes of shares have to be prescribed. It states that different rights and privileges in relation to the different classes of shares MAY ONLY BE CONFERRED IN SUCH MANNER AS MAY BE PRESCRIBED. Law always restrict its boundries by using these words.
I may be wrong but I have a determined view that section 90 restricts issuance of warrants, if these have not yet been prescribed.
You have agreed that there has nothing been prescribed about warrants in law. The only prescribed shares in company law are ordinary shares and preference shares therefore section 90 has utmost relevance to what I have tried to explain.
I am still of the view that unless and until law prescribes right and privilidges and proivide rules and guidance for issuance of warrants no company can issue warrants in Pakistan. This is the public money and regulators will never allow to collect and utilize it without or beyond the limited prescribed by the promulgated rules and regulations.
If it could be a case, why not every ABC or XYZ start collecting money from public in similar ways and what was the need for promulagting rules for commercial paper, TFCs, preference shares and for calling deposits from public etc.
It can be simply a difference of opinion but I wonder what SECP will opine if you post them a query to clarify this matter. If you do, and get a response, let us know as well.
Regards,
KAMRAN.
