Stay order: JSCL stopped from issuing right shares

KARACHI: The Sindh High Court has restrained the Securities and Exchange Commission of Pakistan (SECP) from approving the decision of an extraordinary general meeting of Jahangir Siddiqui & Company Limited (JSCL) about issuance of right shares. Hearing a lawsuit filed by JSCL’s minority shareholders, a single bench headed by Justice Amer Raza Naqvi ordered that the stay would remain in place until the disposal of the case. Ten small shareholders had approached the court to seek recovery of Rs424.94 million paid to the defendant Ali Jahangir Siddiqui, the director of JSCL, as advisory fee. The plaintiffs also asked the court to stop JSCL from calling an extraordinary general meeting, slated for September 19. The meeting was proposed to empower the company to raise its capital by Rs1.144 billion by issuing class preference shares.

Published in The Express Tribune, October 21^st, 2014.

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