020401

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020401

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
(COMPANY LAW ADMINISTRATION DIVISION)
Islamabad, the April 01, 2002
No.ClD/620/1/2002
Circular No. 07 of 2002

Subject:

COMPANIES EASY EXIT SCHEME (CEES) AND EXTENSION IN PERIOD OF COMPANIES REGULARISATION SCHEME (CRS).

Securities and Exchange Commission of Pakistan announced Companies Regularisation Scheme (CRS) through circulars No. 08 of 2001 the defaulter companies an opportunity to regularize their affairs through filing overdue statutory returns with one time additional fee instead of three times additional fee and such companies are also absolved of the liabilities of penal provisions of the Companies Ordinance, 1984. Keeping in view the wide acceptance of CRS and demand from the relevant quarters, the period of CRS has been extended initially upto April 30, 2002 subject to payment of one time additional fee and then upto June 30, 2002 on payment of two times additional fee during May and June, 2002.

4. The Commission has been receiving suggestions/representations that some scheme should be announced to provide an opportunity in getting names of their defaulting companies struck off the register of the companies. Therefore, the scheme titled "companies easy Exit Scheme’ (CEES) is hereby launched. The main characteristics of this scheme are as under:-
a. It would be operative for a period of one month i.e. April 01, 2002 to April 30, 2002.

b. The companies which neither have nay business nor have any assess and liabilities would furnish the application for seeking to get struck off of their names from the register of companies.

c. Rate of fee for such application would be as under:-

(1)	Private Limited Companies	Rs. 3,500
(2)	Unlisted Public Companies, Association u/s 42/Guarantee Companies u/s 43	Rs. 7,500

d. The application shall supported with the Board resolution or a resolution of the shareholders of the company. Format of the application is provided at Annexure-I.

e. One of the directors preferably chief executive of the company shall also furnish a declaration duly verified by an affidavit administered before Class 1 Magistrate that the company has no assets/liabilities and that it is not carrying on any business or any operation; and that it is has no liabilities outstanding in relation to any loan(s) obtained from the banks/financial institutions, taxes utility charges, or any obligations towards government departments or private parties. The format of declaration is given at Annexure-II.

f. The company shall also furnish a certificate from the company’s auditors stating that to the best of his knowledge and belief the company has not been carrying on any business or operation, that it has no assets/liabilities and that it has no liabilities outstanding in relation to any loan(s) obtained from the banks/financial institutions, taxes, utility charges, or any obligations towards government departments or private parties. In case, the auditor of the company is a person other than a practicing Chartered Accountant or a practicing Cost and Management Accountant, the certificate shall be obtained from a practicing Chartered Accountant or a practicing Cost and Management Accountant. The format of the certificate is given at Annexure-III.

g. On receipt of sufficient number of applications or at the end month, notices will be published in official Gazette inviting any objection from possibly interested parties against such striking the company name off the register of companies.

h. If no objection is received and registrar is satisfied that the company is really not in operation and has no assets or liabilities, the name of the company shall be struck off the register of the companies. In case objection is received against such striking off the name of the company, the registrar concerned will examine the issue in detail and decide about the acceptance or rejection of the application after giving proper notice and hearing to the applicant company and the objecting party. A proper procedure would be conveyed to the registrars for dealing with applications.

i. If no objection is received after three months of publication of first notice, the notification would be published in Official Gazette stating that the companies names have been struck off the register of companies. Similarly cases where objections were received and after consideration were rejected, the notification for striking of their names from the register of the companies shall be published.

j. In case the objections are accepted and the applications are turned down, the companies and parties concerned would be informed accordingly.

Sd/-
(M. ZAFAR-UL-HAQ HIJAZI)
Commissioner (CL)

Annexure-I
LETTER HEAD OF COMPANY

No._________
Date_________

To,
The Additional/Joint/Deputy/Assistant Registrar
________________
________________

Subject:

APPLICATION FOR STRICKING OF NAME OF COMPANY UNDER SECTION 439 OF THE COMPANIES ORDINANCE, 1984

Dear Sir,

Please refer to "companies Easy Exit Scheme" announced vide circular No._______________/2002 dated______________.

The Company after carefully considering all aspects has duly resolved in the meeting of directors/shareholders held on___________to make an application seeking striking the name of our company off the register of companies under section 439 of the Companies Ordinance, 1984.

Now, therefore, the undersigned requests to take action to strike the name of the company off the register of the companies. We furnish the following details and documents for considering the application.

i) Board of directors’ resolution/shareholders resolution dated _________ as per Annexure-I.
ii) Declaration of Chief Executive/director duly verified by an Affidavit as per Annexure-II.
iii) Auditors’ certificate/certificate from practicing chartered accountant or practicing cost and management accountant as per Annexure-III.

Yours faithfully,

( )
NAME & SIGNATURE
CHIEF EXECUTIVE/DIRECTOR

Annexure-II
ON STAMP PAPER OF REGUISITE VALUE

DECLARATION

I________________(Names, Father or Husband’s names and addresses) do hereby solemnly affirm and state as follows:-
1. That I am the Chief executive/director of M/s._________
2. That a resolution has been passed by the directors/shareholders of the company in their meeting held on_______to furnish application seeking striking off the name of company from the register of the companies under section 439 of the Companies Ordinance, 1984.
3. That the above named company has no assets and liabilities.
4. That the company is not carrying on any business or any operation.
5. That the company has no liabilities outstanding in relation to any loan(s) obtained from the banks, financial institutions, taxes, utility charges, or any obligations towards government departments or private parties; and
6. That the contents of the application and whatever is stated above is true and correct according to may best knowledge and belief.

Deponent

Place:_____
Date:______

Verified/Attested by Class 1 Magistrate,
Seal of Attesting Officer.

Annexure-III
Auditors’ Certificate/Certificate from practicing Chartered Accountant/Cost and Management Accountant

We have examined the books and record of M/s. __________and have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of this certificate and after due verification thereof, we certify that M/s._______________________has no assets/liabilities and that it is not carrying on any business or any operation; and that it has no liabilities outstanding in relating to any loan(s) obtained from the banks/financial institutions, taxes, utility charges, or any obligations towards government departments or private parties.

Place:___________
Date:____________

(Signature with name of auditors)

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