PARVAIZ AKHTER BHATTI vs FEDERATION OF PAKISTAN through Secretary Cabinet Division, Islamabad S

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PARVAIZ AKHTER BHATTI VS FEDERATION OF PAKISTAN through Secretary Cabinet Division, Islamabad S. 166---Public Sector Companies (Corporate Governance) Rules, 2013, R. 3(4)---ESTACODE, Serial No. 141---Constitution of Pakistan, Art. 199---Constitutional petition---Quo warranto---Independent Director---Appointment---Return of benefits---Principle---Dispute was with regard to appointment of independent directors and other official in Pakistan Television Corporation---Validity---Public sector companies were not allowed to appoint any person without adhering to the criteria of fit and proper person---Such companies had to act independently, transparently, impartially and in unbiased manner so as to select best and the most suitable candidate strictly on merits---Such persons in public sector companies were required for their responsibility, planning, succession, management and policy decisions in the best interest of company---Nomination made by Federal Government through Prime Minister was to be exercised under structured formula, when summaries of authorities regarding appointment of Members of Board of Directors lacked transparency nor even Members of Board of Directors were selected from data bank maintained by Security and Exchange Commission of Pakistan in terms of S. 166 of Companies Act, 2017---Respondent who was appointed Chairman of the Board received pecuniary benefits while remaining Managing Director of the PTVC for period of 5 months against high salary with other fringe benefits---Respondent Chairman subsequently resigned from his position and was again appointed as Chairman, PTVC for three years without adhering to S. 166(2)(a)(b)(h), (4) & (5) of the Companies Act, 2017 and in violation of R. 2(d) of Public Sector Companies (Corporate Governance) Rules, 2013---Respondent director was in Board of Directors of private company receiving monthly subscription of PTVC in its account---Such company of respondent director had direct substantial business relationship with PTVC, which itself was violation of R. 2(ii) of Public Sector Companies (Corporate Governance) Rules, 2013---High Court declared that appointments of respondents Chairman and Director were illegal---Salary packages of respondents were on higher side which required concurrence of Federal Government on the principle of best practice---High Court directed Federal Government to devise a policy for future appointments to be made in all public sectors companies along with criteria of setting up salary, perks and privileges after consultation with Ministry of Finance and Ministry of Law and Justice---High Court further directed Federal Government to nominate Members of Board of Directors of PTVC in accordance with law, while observing requirements of R. 3(4) of Public Sector Companies (Corporate Governance) Rules, 2013 and Companies Act, 2017---Constitutional petition was allowed accordingly.

PARVAIZ AKHTER BHATTI vs FEDERATION OF PAKISTAN through Secretary Cabinet Division, Islamabad S — 2022 CLD 731 ISLAMABAD

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