MTC Successfully Represents Listed Company in Challenge to SECP Notice

Mohsin Tayebaly & Co. acted on behalf of a public listed company against which the Securities and Exchange Commission of Pakistan (SECP) had instituted proceedings under Section 221 of the Companies Act, 2017 for inspections of books and accounts of the Company.

However, through the notice under Section 221, the SECP also appointed inspectors and further made certain allegations against the Company pertaining to its financial dealings thereby enlarging the scope of its inspection beyond the realms of Section 221. It appeared that the SECP was attempting to undertake an investigative exercise under Section 256 of the Companies Act, 2017 under the garb of a notice under Section 221.

The Honorable High Court of Sindh has been pleased to limit the scope of the notice of the SECP and restrict its exercise to only the powers of inspection available under Section 221. All actions which were beyond the parameters of Section 221 have been set aside. The High Court decision has been approved for reporting.

MTC’s team in the matter was led by Mr. Arshad Tayebaly, Senior Partner, and included Mr. Talha Javed, Senior Associate.