Karachi: Sitara Peroxide Limited has encountered regulatory challenges due to the non-holding of its Annual General Meeting (AGM) for the fiscal year ended June 30, 2023. The company has been directed to hold this meeting by October 10, 2024, to comply with the legal requirements under Section 147 of the Companies Act, 2017, which mandates the annual disclosure of audited financial accounts to shareholders.

According to information available from the Pakistan Stock Exchange (PSX), the failure to conduct an AGM can attract significant penalties under Section 148 of the Act, emphasizing the seriousness of this oversight. Sitara Peroxide’s management has requested an extension for holding the AGM by November 4, 2024, following their board meeting on September 24, 2024, where the annual accounts were approved.

The company’s application for the extension, which cites efforts to adhere to the statutory timeframe amidst unspecified challenges, is pending approval from the regulator. This development follows a formal complaint by an aggrieved shareholder, which prompted the regulatory authority to reiterate the importance of the AGM as a fundamental shareholder right.

This situation places Sitara Peroxide Limited under close observation by investors and regulatory bodies, as the company navigates compliance issues while attempting to uphold corporate governance standards.