The petitioner said Chief Executive or MD could only be removed before the end of the term if three-fourth of the company's directors passed a resolution in this regard. PHOTO: FILE
A division bench, headed by Justice Maqbool Baqar, also issued a notice to the respondents – the prime minister and the Ministry of Petroleum – as well as the deputy attorney general.
The move came after SSGC Managing Director Zuhair Siddiqui filed a petition with the court, arguing that the premier’s order was illegal, incompetent and unauthorised.
The petitioner, through his counsel Anwar Mansoor Khan, submitted that chief executive of the company, who had been appointed by the board of directors as managing director, was removed through an order purportedly passed by the prime minister on February 28.
Referring to rules and regulations of the company, he said Article 90 specified the circumstances under which managing director or chief executive holds the office or can be removed. However, the law has been repealed and now Section 202 of the Companies Ordinance 1984 is applicable to the appointment or removal of managing director.
According to this section, the petitioner said, chief executive or MD could only be removed before the end of his term if three-fourth of the company’s directors passed a resolution in this regard.
He pointed out that the directors passed a resolution on February 28 this year, awarding a service contract to the managing director for a period of one year and eleven months from the date of his retirement on March 13, 2013. The period of service of the managing director would expire on March 11, 2015 and he could not be removed, the petitioner said.
He termed the termination of his services unlawful and without jurisdiction and was done without any show-cause notice.
Published in The Express Tribune, May 15th, 2013.
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Zuhair was appointed as MD before his retirement date of march 2013. He was given the contract on Nov 8th 2012. Please get your facts right
According to Supreme Court's decision/orders officer cannot be rehired on contract basis after his retirement in the same company. Zuhair has been hired on contract after his retirement.