Karachi: Dadabhoy Construction Technology Limited has been penalized for failing to conduct its Annual General Meeting (AGM) within the regulatory timeframe for the financial year ended June 30, 2022. The Pakistan Stock Exchange (PSX) regulations mandate that listed companies must hold their AGM within 120 days after the closure of their financial year, under Section 132(1) of the Companies Act, 2017.
According to information available from the Pakistan Stock Exchange (PSX), the company did not convene the required meeting, triggering a violation notice and subsequent legal proceedings. Despite being issued a Show Cause Notice on January 5, 2023, and multiple opportunities to address the issue, the company failed to respond adequately and missed several scheduled hearings.
The matter, presided over without a company representative's attendance on several occasions, finally led to a penalty imposition. On reviewing the case facts and the company's submitted revival plans, the authorities concluded that the company's failure was a clear breach of its statutory duties. Consequently, a penalty of Rs. 100,000 has been levied against Dadabhoy Construction Technology Limited.
The penalty underscores the stringent enforcement of compliance requirements by PSX to ensure transparency and protect shareholder interests. The company has been directed to arrange its overdue AGM without further delay and comply with all regulatory obligations. Failure to deposit the penalty within 30 days will lead to further legal action to recover the funds as arrears of land revenue.
This enforcement action serves as a reminder to all listed entities of the importance of adhering to prescribed timelines and procedures to maintain their listing privileges and operational transparency.