Who Owns Pakistan - Yimg

Law Authority will soon seek public comments on proposed Companies Court
Rules with regard to windig up of companies.
The Chief Justice of Pakistan asked us to write down the rules (about winding up
the companies) and they are voluminous at the Companies Ordinance.
Comments of Honorable Judges of High Court have already been received and I
am glad to say that these have been approved recently. Within two months, the
draft rules are expected to be public for public comments" he had said
emphatically.
Ironically, Irtaza Hussain has been member of every commission, committee or
working group set up by successive governments during last eight years but the
need to require the big business to publish consolidated group accounts and
promulgate rules about liquidation of sick companies has apparently withered
away and therefore, has not been mentioned by any working group or committee
seeking to reform the corporate sector.
The company law, 1984 required all the private limited companies to go public if
their paid up capital exceeded Rs 50 million. However, there are score of private
limited companies with annual turnover ranging between several hundred million
to 2 billion rupees but they have not gone public. These include Mohammad
Amin Mohammad Bashir (pvt) Ltd, the parent company of Crescent Group,
Alnoor Fertilizer Industries, Jaffer Bros, Dawood Corporation, Tabani
Corporation, Arfeen International owning Pakistan's biggest oil tanker, Ghani and
Tayyab (pvt) Ltd of Haji Tayyab, Ittefaq Foundary, Shahnawaz Ltd and Mercury
Corporation.
How CLA has facilitated people to make quick money can also be illusterated by
the following example.
Allied Bank Ltd (ABL) President Khalid Latif was arrested by
Federal Investigation Agency (FIA) on January 11, 1995 for
financial bungling relating to Allied Bank Modaraba. According to
complaint, a section officer of Ministry of Finance, Khalid Latif had
drawn Rs 30 million from a branch of his own bank, in the name of
Pak Trading Company, set up, on the security of fake export bills.
The amount was used by him to purchase shares of Allied Bank
Modaraba, in the name of eight different persons.
Similarly Yunus Habib Chief Executive Officer (CEO) of Mehran
Bank, now serving prison was accused to have incorporated 27
fake companies in whose name he was drawing money from his
own bank. Schon group is reported to have set up string of fake
companies to withdraw Rs 662 million from National Fibre after its
privatization. How a fake company can be floated and shares can
be bought in the name of eight different persons prove that
125