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