| Details: |
THE WEST PAKISTAN UNDESIRABLE
COMPANIES ORDINANCE, 1959.
(W. P. Ordinance No.XXII of 1959)
CONTENTS
SECTIONS.
1.
Short title and extent.
2. Definitions.
3. Registration of undesirable
Companies prohibited.
4. Existing undesirable
Companies to cease functioning.
5. Deposit of cash and
preservation of assets, etc.
6. Statement of assets, etc.,
to be submitted to registrar.
7. Winding up undesirable
Companies.
8. Dissolution of undesirable Companies.
9. Power to call for certain
information, etc.
10. Offences to be cognizable.
11. Cognizance by court with the consent of
registrar.
12. Power to make rules.
THE
WEST PAKISTAN UNDESIRABLE COMPANIES ORDINANCE, 1959.
(Ord. No. XXII of 1959)
[22ndApril,
1959]
AN
ORDINANCE
to prohibit the registration of companies for carrying on business for
certain undesirable purposes and to provide for the winding up and dissolution
of such companies.
|
WHEREAS
it is expedient to prohibit the registration of companies for carrying on
business for certain undesirable purposes and to provide for the winding up
and dissolution of such companies;
|
Preamble.
|
|
NOW,
THEREFORE, in pursuance of the Presidential Proclamation of the seventh day
of October, 1958, and in exercise of all powers enabling him in that behalf,
the Governor of West Pakistan is pleased to make and promulgate the following
Ordinance:-
|
|
|
1. (1) This
Ordinance may be called the West Pakistan undesirable Companies Ordinance,
1959.
[(2) It
extends to the whole of the [Province
of Khyber Pakhtunkhwa expect the Tribal Areas.]
|
Short title and extent.
|
|
2. (1)
In this Ordinance, unless the context otherwise requires, the following
expressions shall have the meanings here by respectively assigned to them,
that is to say –
|
Definitions.
|
(a) “registrar”
means –
(i)
in the case of a company, the
registrar appointed under section 248 of the Companies Act, 1913, and
(ii) in
any other case, an officer appointed as such for purposes of this Ordinance;
(b) “specified
purposes” means the promotion or the carrying on of any scheme or business
except the business authorized and carried on underthe provisions of the Insurance
Act, 1938, by whatever name called, whereby, in return for a deposit or
contribution, whether periodically or otherwise, of a sum of money in cash or
by means of coupons, certificates, tickets or other documents, payment, at
future date or dates or money or grant of property, right or benefit, directly
or indirectly, and whether with or without any other right or benefit,
determined by chance or lottery or any other like manner, is assured or
promised;
(c) “undesirable
company” means a company which, with objects and business confined to the [Khyber
Pakhtunkhwa] is registered under the Companies Act, 1913, and carries on
business for a specified purpose or for purposes which, among others, include a
specified purpose and includes a company, association or other body of
individuals which, carries on business for a specified purpose or for purposes
which among others, include a specified purpose.
(2)
Any expression used but not defined in this Ordinance and defined in the
Companies Act, 1913, shall have the meanings as assigned to it in that Act.
|
3. (1)
Notwithstanding anything in the Companies Act, 1913 or in any other law for
the time being in force, no association or other body of individuals which
with object and business confined to the, [Khyber
Pakhtunkhwa] carries or intends to carry on business for a specified purpose
or for purposes which, among others include a specified purpose, shall on and
after the commencement or this Ordinance be registered under the Companies
Act, 1913.
(2) Registration in contravention of
sub-section (1) shall be void.
(3) Notwithstanding
anything contained in other law for the time being in force, in company,
association or other body or individuals with objects and business confined
to the [Khyber
Pakhtunkhwa] shall carry on, or shall be formed to carry on, business for a
specified purpose or for purposes which, among others, include a specified
purpose.
(4) Any person who forms or
associates himself in the formation of, a company, association or other body
of individuals in contravention of sub-section (3) and every officer or agent
of a company, association or other body of individuals which carries on
business in contravention of the said sub-section shall be punished with
imprisonment for a term which may extend to three years or with fine or with
both.
|
Registration of undesirable
companies prohibited.
|
|
4. (1) Every
undesirable company existing immediately before the commencement of this
Ordinance shall, on such commencement, cease to function and, notwithstanding
anything in the Companies Act, 1913 or in any other law for the time being in
force, shall be wound up and dissolved in the manner provided in the
Ordinance.
(2) Any transaction with an undesirable
company or with any officer or agent acting for or on behalf of such company
shall be void.
(3) Any officer or agent
acting for or on behalf of any such company who, on or after the commencement
of this Ordinance, carries on or attempts to carry on the business of the company
shall be punished with imprisonment for a term which may extend to three
years or with fine or with both.
|
Existing undesirable companies to
ceases functioning.
|
|
5. (1)
Any officer or agent acting for or on behalf of an undesirable company who has
in his possession or under his control any cash belonging to the company
shall, immediately after the commencement of this Ordinance, deposit or cause
to be deposited such cash with the company’s bankers.
(2) Until such time
as the official liquidator appointed under section 7 takes into his custody
or under his control all the books, documents and assets of the company,
including actionable claims to which the company is or appears to be
entitled, every officer and agent acting for or on behalf of the company
shall preserve all such books, documents, assets, property, effects and
claims and shall be jointly and severally liable for any loss or damage.
(3) Any person who, with
intent to evade the provisions of this Ordinance, conceals, destroys, mutilates
or defaces any books, documents, assets, property, effects or claims or
knowingly allows such concealment, destruction, mutilation or defacement to
be caused, shall without prejudice to any liability to which he may be
subject under sub-section (2), be punished with imprisonment for a term which
may extend to three years or with fine or with both.
|
Deposit of cash and preservation
of assets, etc.
|
|
6. (1) Within three days of
the commencement of this Ordinance, or within such period as the registrar
may allow, the manager of an undesirable company shall submit to the
registrar a statement showing the assets and liabilities of the company.
(2) Anyone who
contravenes the provisions of sub-section (1) shall be punished with
imprisonment for a term which may extend to one year or with fine or with
both.
|
Statement of assets, etc., to be
submitted to registrar.
|
|
7. (1) Soon as may be
after receipt of the statement submitted under sub-section (1) of section 6,
the registrar shall make a petition to the court for winding up the company,
and there upon the court shall make an order for the winding up of the
company and shall appoint an official liquidator for such winding up.
(2) After the official liquidator
has been appointed under this section, the provisions of the Companies Act,
1913, relating to the winding up by court of the a registeredcompany
shall mutates mutandis apply in relation to the winding up
of the company in respect of which the petition has been made under
sub-section (1).
|
Winding up undesirable cgmpanies.
|
|
8. When the affairs
of an undesirable company have been completely wound up, the company shall be
deemed to have been dissolved under sub-section (1) of section 194 of the
Companies Act, 1913.
|
Dissolution of undesirable
companies.
|
|
9. (1) Where the
registrar has reason to believe that a company is an undesirable company or
that an undesirable company is carrying on business in contravention of
section, 4, he or any Gazetted Officer authorized by him in this behalf, may
–
|
Power to call for certain
information, etc.
|
(a) direct
any person to give such information in his possession with respect to any
business carried on by that company as he may demand;
(b) inspect
or cause to be inspected any book or other document belonging to or under the
control of the company or any officer there of;
(c) enter
and search any premises and seize or authorize any person to seize any book or
other document belonging to or under the control of the company or any officer
there of.
(2)
If the registrar is satisfied that a company is an undesirable company or that
an undesirable company is carrying on business in contravention of section 4,
he shall by order in writing, direct the manager of the company to hand over
the management of the company to a person to be appointed by the registrar for
the purpose, and the manager shall forth with hand over the management of the
company to such person.
(3) The person to whom management is handed
over in pursuance of sub-section (2) shall be deemed to be the manager of the
company, and the other provisions of this Ordinance shall apply accordingly.
(4) Whoever
fails to comply with any direction given under sub-section (1) or sub-section
(2) shall be punished with imprisonment for a tem which may extend to six
months or with fine or with both.
|
10. Notwithstanding
anything contained in the Code of Criminal Procedure, 1898, any offence under
this Ordinance shall be cognizable.
|
Offences to be cognizable.
|
|
11. No court shall take
cognizance of the offence under this Ordinance except with the previous
consent in writing of the registrar.
|
Cognizance by court with the
consent of registrar.
|
|
12. The Provincial
Government may make rules to carry out the purposes of this Ordinance, and
such rules may provide that the breach of any of them shall be punishable
with imprisonment for a term not exceeding three months or with fine not
exceeding one thousand rupees.
|
Power to make rules.
|
.In sub-section (2), for the word “Federal
Capital and the Special Areas”, the words “Tribal Areas”, subs, by W. P. Ord.
VII of 1964.
|
