ISLAMABAD (February 21 2004): On the directive of Securities and Exchange Commission of Pakistan (SECP), Punjab Cotton Mills has withdrawn a resolution from its Annual General Meeting (AGM) for sale of its assets.

The Punjab Cotton Mills, a listed company, had convened its AGM in which it proposed to pass a special resolution authorising its Board of Directors, or any other person authorised by the Board, to dispose of its assets.

The SECP observed that in the resolution, statement of material facts pertaining to the proposed special business as required under Clause (b) of Sub-section (1) of Section 150 of the Companies Ordinance was not annexed to the notice of the meeting.

It, therefore, restrained Punjab Cotton Mills Limited from passing special resolution to dispose of the assets of the company in terms of Sub-section (3) of Section 196 of the Companies Ordinance, 1984 without proper disclosure to the shareholders of the company.

The SECP directed the company that the passing of such a resolution would be contrary to the provisions of the Companies Ordinance, as material information in respect of proposed special business had not been disclosed to the shareholders as required under the provisions of the Companies Ordinance.

On the directive of the SECP, the company has decided not to proceed further, and it withdrew the resolution for sale of its assets from the agenda of the meeting.

Courtesy Business Recorder