AMTEX LIMITED vs SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Ss — 2026 CLD 9 ISLAMABAD

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AMTEX LIMITED VS SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Ss. 261 & 265---Investigation of company's affairs---Appointment of inspector ---Scope---Petitioner /Company assailed order of appointment of inspector into its affairs---Validity---At the stage of forming an opinion under S. 261 of the Companies Ordinance, 1984 ('the Ordinance 1984'), the Registrar is not required to possess conclusive or irrefutable evidence in order to send a report to the Commission---Similarly, for appointing inspector(s) under S. 265 of the Ordinance 1984 to carry out an investigation into the affairs of the company, the Commission needs to simply form an opinion--- The statutory scheme contemplates a preliminary and subjective satisfaction based on the existence of material that raises a legitimate concern about the correctness or propriety of acompany's affairs---The expression "is of the opinion" in Ss. 261 & 265 of the Ordinance, 1984 means that the opinion must be founded on some tangible basis, but need not meet the evidentiary standard required for adjudication---The purpose at said stage is merely to enable the Commission to decide whether an in-depth investigation is warranted---A full-fledged inquiry in the form of atrial is not required before passing the order or for the appointment of Inspectors---The Commission has to only satisfy itself, primafacie, on the basis of material placed before it, that a case for investigation through Inspectors can be called for, and it is for the Inspectors to ascertain and determine the truth--- Hence, the role of the Commission is rather inquisitorial than adjudicatory, as it does not entail recording findings of guilt or liability---If, upon reviewing the documents and responses submitted by the Company, the Registrar or the Commission observes inconsistencies or unexplained discrepancies, such as conflicting financial disclosures or potential suppression of material facts in the prospectus, that alone would be sufficient to form an opinion calling for further probe---Thus, the appointment of an Inspector is neither punitive nor final, but merely facilitates the collection of evidence by an independent functionary---Constitutional petition, being merit-less, was dismissed.

AMTEX LIMITED vs SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Ss — 2026 CLD 9 ISLAMABAD

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