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SHC seeks comments from SECP, PSX over disputed election of BoDs of M/s Hum Network Limited

SHC seeks comments from SECP, PSX over disputed election of BoDs of M/s Hum Network Limited

KARACHI: The Sindh High Court (SHC) directed Securities and Exchange Commission of Pakistan (SECP), Pakistan Stock Exchange (PSX), PEMRA and others to file their respective para wise comments on different suits over disputed election for boards of directors of M/s HUM Network Limited (HUM TV).

On 9 September 2020, a single bench, comprising Justice Hasan Azhar Rizvi heard the matter.

During the hearing, Khowaja Shamsul Islam, Altamash Arab, Zia-UL-Haq Makhdoom, Basil Nabi and other advocates filed vakalatnamas, after the hearing, court adjourned the hearing for Sept 16, 2020 and continued interim order till next date of hearing.

It needs to be mentioned here, on last date of hearing, court had passed interim order and restrained Hum Network Limited from recalling of its notice issued dated August 13, 2020 for unopposed elected 7 members as its boards of directors for next three years.

Earlier, petitioners Shahid Hussain Jatoi, Muhammad Khwar Iqbal informed the court through their counsels that M/s Hum Network Limited extra ordinary general meeting on July 24, 2020, which intimated that seven directors of the company are to be elected at the EOGM for a three-year period commencing on August 22, 2020.

They submitted that on pursuant to the requirement and in full compliance of the companies act, filed their nomination papers including consent to act as director, as mandated by the said act and no objection whatsoever was raised by the company or any competent authority under the law regarding their nominations.

Counsels argued that however, on August 13, 2020, to the utter shock and dismay of the plaintiffs, the company has issued a purported notice to its members intimating that out of the 15 candidates who had filed their intentions to contest the boards of directors elections, 8 candidates have been purportedly found to be ineligible to contest the election as their nominations were in violation inter-alia regulation 11(1) and (3) PEMRA Regulations 2012 as representatives of foreign investors’ companies.

Citing above as respondents, petitioner pleaded the court to direct SECP to appoint an officer who has experienced and neutral person well-versed in corporate laws as a supervisor to conduct the complete election process of the company including the conduct of EOGM on August 22, 2020 and who must insure that the BOD election are held in a free, fair, transparent and legal manner.

Another side Ms Mahtab Akbar Rashdi also filed suit and argues her counsel that she was unopposed elected as boards of director dated August 13, 2020, however, she is apprehending recalling her name from the notice, and therefore, court may restrain M/s Hum Network Limited from recalling said notice.