KARACHI – The Securities and Exchange Commission of Pakistan (SECP), on Monday, referred the Lahore High Court’s (LHC) decision regarding dissolution of two textile mills to the Karachi and Lahore stock exchanges.
“Please find enclosed herewith a copy of the dissolution orders of the captioned companies for your information and further necessary action at your end,” the SECP informed Acting Managing Director and General Manager Operations KSE Haroon Askari.
LSE Managing Director Aftab Ahmed Chaudree was also notified about the court order. The LHC ordered Hala Spinning Mills Limited (HSML) and Itti Textile Mills Limited (ITML) to wind up operations after their entire sale proceeds and profits were distributed among creditors.
According to court order, the two textile mills were ordered to be shuttered under Section 305 and 309 of the Companies Ordinance 1984 on the request of their official consignees. The petitioner had alleged that some substratum of the petitioner company, Itti Textile Mills, had gone as the object for which it was incorporated had failed.
“This is just and equitable that petitioner may be wound up by this court,” the official consignee had requested the LHC. The order said that all shareholders assets and properties of the companies were disposed off and liabilities of HBL were paid off. “It appears there were no other liability of the company and the petition was consequently allowed under order of this court.”
Copies of the court verdict, as directed by the LHC, were communicated to the Registrar Joint Stock Companies, while the apex regulator on its part, asked the managements of KSE and LSE to complete the required action at their end. The court observed that since the affairs of the companies had been completely wound up and no known assets of it left noting further was to be done.
The court said that the bank had closed the liquidation account of the companies handing over a cheque” of Rs 4,401 to the CIRC which might retain the said amount. The court decreed that a copy of its order be forwarded to the registrars of the Joint Stock Companies, who shall make in his books, a minute of the dissolution of the companies.
It said that the books of the company shall be kept intact for almost one year. “The liquidation account already stands closed and all CMs and reports stand disposed of,” it added.
