The Adjudication Department of Securities and Exchange Commission of Pakistan (SECP) has imposed penalties of Rs. 500,000 each on Pakistan Engineering Company Limited and its CEO for their non-compliance with the directions that had been given for the holding of overdue annual general meetings, according to the documents available with Propakistani.
The respondents had failed to comply with the SECP’s directions under Section 147 of the Act, as given vide letters dated 24 August 2020, 26 October 2020, and 13 November 2020 to convene the overdue AGM for FYs 2019 and 2020, and to lay therein the financial statements for the financial year that ended on 30 June 2019 as well as 2020.
The respondents had also failed to submit a plan to hold the overdue AGMs, which reflects their reluctance to comply with the given directions.
The respondents’ stances highlight their inability to convene and hold the overdue AGMs, and do not absolve them of their responsibilities of holding the AGMs on time, and lay therein the respective annual audited accounts.
The holding of AGMs and the laying of audited annual accounts therein are statutory obligations. A significant period of time has passed and the respondents have failed to hold the overdue AGMs for the FYs 2019 and 2020.
The respondents cannot absolve themselves from their statutory duties pertaining to the holding of the AGMs, and the preparation and filing of the annual financial statements in a timely manner as specified in the Act.
The Adjudication Department stated in its order that the respondents have failed to discharge their duties, obligations, and responsibilities to comply with the aforesaid requirements of the act and the directions given under Section 147. Thereof, in the exercise of the powers conferred upon it under Section 148 of the Act, it hereby imposes penalties of Rs. 500,000 on the company and Rs. 500,000 on the CEO of the company.