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MESSRS HAMID TEXTILE MILLS LIMITED: IN THE MATTER OF versus MESSRS HAMID TEXTILE MILLS LIMITED: IN THE MATTER OF

Without the consent of the General Meeting of Sections 196 and 476 of the Company's share of the assets of the company, the chief executive and director plant the sale proceedings to sell a significant portion of the company's assets or to penalize the company for infringement. ? Sale of machinery in accordance with the provisions of section 196 (3) (a) of the Companies Ordinance, 1984, whereby directors of a company could not sell or lease company assets without the consent of the General Meeting. Was never added to the agenda item. At any general meeting of the company during the last seven years, the Directors; Accounts linked report did not disclose the sale of this plant and machinery. Since this was a significant part of the company's overall performance, it required the consent of the general meeting of the company raised by the company in response to the commission's action for its sale, following the principles of good corporate culture. Violated and demonstrated negligence. Company directors ensure that the shareholders were consulted prior to the sale of a shareholder or that a substantial portion of it cannot be ignored. The default was established and the provisions of section 196 (4) of the Companies Under the directors were responsible for the punishment. Ordinance, 1984 Considering the fact that the proceeds from the sale of the assets were used to pay the obligations of the company and also to the fact that the administration imposed a maximum fine of Rs. Was trying to restore the company instead. Director, chief executive and three directors of the company fined Rs 20,000. top advocate from Padidan lawyer