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. 263 & 265---Investigation of company's affairs---Appointment of inspector ---Scope---Petitioner /Company assailed order of appointment of inspector into its affairs---Argument of the petitioner was that the Commission had already verified the prospectus previously and was, therefore, barred from reopening the matter after six years---Validity---The impugned actions, made after providing the Petitioner ample opportunity to respond, fell squarely within its regulatory authority and an investigation was a necessary and continuing step to ascertain whether the Company's affairs were being conducted in violation of sound commercial and statutory principles---Therefore, the argument of the petitioner was untenable---Provisions of the Companies Ordinance, 1984, confer a continuing supervisory power upon the SECP to form an opinion at any stage, if there is reason to believe that the company's affairs are being conducted in a manner prejudicial to the categories mentioned under S. 265 of the Companies Ordinance, 1984---Thus, formation of such an opinion is administrative and preparatory in nature, it does not amount to a finding of guilt or subjecting the company to civil consequences---The formation of opinion under S. 265 requires only the existence of credible material suggesting the need for further inquiry, hence, it does not demand conclusive proof of wrongdoing---The discrepancies noted in the Petitioner's disclosures provided such a material basis, justifying SECP's action---Thus, the Respondents had acted within their lawful authority under Ss. 263 & 265 of the Companies Ordinance, 1984---The opinion formed was supported by relevant material and did not suffer from arbitrariness or mala fide intent---The petitioner, instead of fully complying with the directions, provided inconsistent information, thereby inviting a legitimate inquiry---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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