SECP has issued a sanction for filing of winding-up petition under the Companies Act, 2017 with respect to Pak Memon Impex (Private) Limited and Memon Corporation (Private) Limited.
The Securities and Exchange Commission of Pakistan (SECP), identified that Pak Memon Impex (Private) Limited and Memon Corporation (Private) Limited have been involved in unlawful and restricted businesses of leasing of vehicles, houses, electronics etc., carrying out investment and financing businesses by paying attractive returns to customers in lieu of their investment and by accepting a specified percentage as principal amount/down payment and financing the remaining payable amount for five years through leasing plans.
In Pakistan, carrying out these activities is prohibited and restricted in terms of Section 282C of the Companies Ordinance, 1984 (Ordinance) with Section 509 of the Companies Act, 2017 (Act) and can only be performed after getting a valid license from regulatory authorities and in a manner as prescribed by these authorities at the time of allowing such businesses.
Accordingly, in March 2019 winding-up proceedings were initiated against these companies in terms of Sub-clause (ii) of Clause (g) of Section 301 of the Act, which have now been authorized through issuance of sanction to relevant Additional Registrar of Companies to present a petition for winding-up of these companies before the Honorable High Courts.
The general public is cautioned and advised not to be misled by such schemes, which offer hefty profits and incentives. SECP issued this warning to safeguard the interest of the stakeholders, who are dealing with these companies in such transactions, which are indeed restricted in terms of Section 282C of the Ordinance read with Section 509 of the Act.
Moreover, the SECP invited attention that mere registering of an entity as private or public limited company etc. does not authorize the sponsors and directors of these companies to get involved in unauthorized, unlawful and restricted activities.