Dr. RASHID TARIN vs The GOVERNMENT OF BALOCHISTAN through Chief Secretary, Civil Secretariat, Quetta Ss

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Dr. RASHID TARIN VS The GOVERNMENT OF BALOCHISTAN through Chief Secretary, Civil Secretariat, Quetta Ss. 2(54), 4, 186 & 187---Public Sector Companies (Corporate Governance) Rules, 2013, R.5(2)---Public Sector Company (Appointment of Chief Executive) Guide Lines, 2015, issued by Securities and Exchange Commission of Pakistan, Clause 7 & Schedule 1---Chief Executive Officer of a public sector company, appointment of---Mechanism/eligibility criteria ---Power /role of the Government---Scope---Petitioner challenged the notification for appointment of the private respondent as Chief Executive Officer of People's Primary Health Initiative Balochistan (PPHI-B), a public sector company---Contention of the petitioner was that the relevant procedure /criteria had not been followed in the said appointment---Validity---Section 4 of the Companies Act, 2017, expressly provides that provision of the Companies Act pre-empts anything contained in any other law (or the Memorandum of Association or Article of Association of a company or contract or agreement or resolution etc.) and any provision or resolution to the extent of its inconsistency with any provision of the Companies Act, 2017, would be void---Sections 186 & 187 of the Companies Act, 2017, empower the Board to appoint the CEO of a Company, subject to S.186 (4) or 187 (4) of the Companies Act, 2017, which prescribes the (relevant) Government the power to nominate CEO of a Public sector Company---Apart from said provision, the company/ PPHI-B had been registered / renewed as a public sector association not for profit in terms of S.2(54) of the Companies Act, 2017, therefore, the appointment of its CEO and allied matters (criteria, process, evaluation of candidates, terms and conditions etc.) were further regulated under R.5(2) of Public Sector Companies (Corporate Governance) Rules, 2013 ('the Rules 2013') and Clause 7 and Schedule 1 of the Public Sector Company (Appointment of Chief Executive) Guide Line, 2015 ('PSC') issued by SECP---Rule 5(2) of the Rules, 2013 is meant for evaluation of candidate for the post of Chief Executive by the Board---After such evaluation the Board must recommend at least three persons to the Government for appointment as CEO of the concerned public sector company; the nominee concurred by the Government is to be appointed by the Board as Chief Executive---Following the specific criteria for such appointment was important---Said provisions (of the Companies Act, 2017, Rules, 2013 PSC) and Articles of Association (AoA) of the Company (PPHI-B) provide certain mechanism/eligibility criteria for the appointment of the CEO---It is obvious from the AoA that Board of Directors owes the Company and makes the Board responsible for placing the succession and appointment of the CEO---Procedure adopted by the official respondents for the appointment of the private respondent did not conform to the said provisions and AoA of the Company on the matters, therefore, impugned notification could not be sustained---High Court set-aside the impugned notification and directed the official respondents to take necessary steps for the appointment of new CEO of the company on merits and in accordance with law---Constitutional petition was allowed accordingly. Citation Name: 2024 CLD 948 QUETTA-HIGH-COURT-BALOCHISTANBookmark this Case Dr. RASHID TARIN VS The GOVERNMENT OF BALOCHISTAN through Chief Secretary, Civil Secretariat, Quetta art. 199---Writ of quo warranto---appointment of Chief Executive Officer of a public sector company, challenging of---aggrieved person---Scope---Petitioner filed constitutional petition challenging the appointment of the private respondent as Chief Executive Officer of People's Primary Health Initiative Balochistan (PPHI-B), a public sector company---Objection of the official respondents was that the writ petition was not maintainable as the petitioner had no locus standi to file the same---Held, that objection of the respondents was not tenable as in case of issuance of writ of quo warranto the person laying information before the court need not be an aggrieved person.

Dr. RASHID TARIN vs The GOVERNMENT OF BALOCHISTAN through Chief Secretary, Civil Secretariat, Quetta Ss — 2024 CLD 948 QUETTA-HIGH-COURT-BALOCHISTAN

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