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Corporate Laws - General questions - wsafca - 12-10-2009
Asalam-o-alikum
Can any body help me on this
Under what circumstances it justifiable to
1) Not allowing shareholders to make extracts from the register of members on the day on which election of directors was held.
2)Pay dividend out of the surplus on revluation of fixed assets.
Regards Ahmed.
- awaisaftab - 12-11-2009
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by wsafca</i>
<br />Asalam-o-alikum
Can any body help me on this
Under what circumstances it justifiable to
1) Not allowing shareholders to make extracts from the register of members on the day on which election of directors was held.
2)Pay dividend out of the surplus on revluation of fixed assets.
Regards Ahmed.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
The law is silent about conditions under which shareholders are not allowed to make extracts from the register of members. However according to section 150 of Companies Ordinance a company is required to give a prior notice of 7 days before closing the members register. The directors may restrict any member from making extracts from the members register under any reasonable circumstances. Beside all it will not be reasonable for any company to allow anyone to make extracts from members register on the day of election of directors because it may result in serious battle among the candidates. In order to avoid any indecent circumstance, directors may disallow any member from making extracts from the register on the day of election of directors. But members always have a right to file application with the registrar or S.E.C.P if they are not satisfied with any decision or directive of directors.
According to sub section 2 of section 235 of Companies Ordinance, 1984 Reserve on Revaluation of Fixed Asset cannot be used for the payment of dividend.
Regards,
Awais Aftab