ISLAMABAD (July 18 2003) : The Securities and Exchange Commission of Pakistan (SECP) is seeking liquidation of 19 companies, which have not held their annual general meetings for the last five to six years.
Under the companies ordinance a company must hold annual general meeting within four months of close of financial year and if a company does not hold two AGMs consecutively, it is liable to be wound up by the court on a petition of the Commission.
An SEC handout says that examination of 706 companies, showed that management of 24 companies failed to hold AGMs within the prescribed time.
The commission was convinced that the companies have been defunct and their management is defaulter in keeping the shareholders aware of the affairs of the company for the last five to ten years, the Commission has decided to start liquidation proceedings against these companies.
The companies are Syed Nadeem Kawasaki Motors Ltd, Peshawar; Taxila Engineering Ltd Peshawar; Bahawalpur Textile Mills Ltd Karachi; Valika Woolen Mills Ltd Karachi; Azmat Textile Mills Ltd, Karachi; Pakistan Northern Insurance Co, Ltd, Karachi; Awan Textile Mills Ltd Lahore; Tawwakal Ltd, Karachi; Tawakal Polyster Industries Ltd, Peshawar; Myfip Video Industries Ltd, Karachi; Norrie Textile Mills Ltd Karachi; Pakistan Dairies Ltd, Lahore; Tawakal Garments Industries Ltd, Karachi; Alif Textile Industries Limited, Karachi; Schon Textile Mills Limited, Karachi; Apex Fabrics Limited, Karachi; Kaisar Arts and Krafts Limited, Karachi; Sterling Insurance Company Limited, Lahore; Mehran Jute Mills Limited, Karachi.
In response to show cause notice, managements of certain companies have, however, offered that they are resolving their financial problems with creditors, banks/financial institutions and there are chances of their revival.
Such companies are being provided a chance to comply with the statutory requirements failing which winding up petitions will be moved against them.