Corporate And Regulatory

Companies (Management by Administrator) Rules, 1993

Status: In force


S.R.O. 1083(I)/93, dated November 8, 1993. - In exercise of the powers con-:erred by sub-section (12) of section 295, read with section 506 of the Companies Ordinance, 1984 (XLVII of 1984), and the Finance Division Notification Mo. S.R.O. 698(I)/86, dated the 2nd July, 1986, the Corporate Law Authority hereby makes the following rules, the same having been published previously as required under the said section 506:-

1.            Short title and commencement. - (1) These rules may be called the Companies (Management by Administrator) Rules, 1993.

(2)          They shall come into force at once.

2.            Definitions. - (1) In these rules, unless there is anything repugnant in he subject or context, -

(i)            "Ordinance" means the Companies Ordinance, 1984 (XLVII of 1984); and

(ii)           "section" means a section of the Ordinance.

(2)          All other words, terms and expressions used but not defined in these rules shall have the same meanings as are assigned to them in the Ordinance.

PART - II

REPRESENTATION TO THE AUTHORITY

3.            Several creditors may join in one representation. - All creditors may be joined in one representation or the representation may be made by one or ore creditors whose debt or aggregate debt is not less than sixty per cent of he paid up capital of the company.

4.            Documents to be accompanied with representation. - (1) The representation under rule 3 shall be in the form of an application to the Authority and shall be supported by such information as specified in the Annexure to these rules.

(2)          A representation shall be accompanied, -

(a)          by supporting documents referred to or relied upon, along with certified copies of annual accounts of the company for the pre-ceding three years; and

(b)          by the original receipt of the fee paid under rule 8.

(3)          The application shall be in triplicate.

5.            Register of Representation. - The Authority shall cause the particulars of every application to be entered in a register to be kept for the purpose, called "Register of Representations under section 295", entries wherein shall be serially numbered in every year and the number in the register shall be endorsed on the application which shall be borne by all proceedings thereunder.

6.            Notice to parties. - When a representation has been duly made by an application, notice shall be issued to the company and all others concerned to appear and show-cause why the application should not be accepted.

7.            Disposal of representations. - (1) The Authority shall, except in extra-ordinary circumstances and on grounds to be recorded, hear the representation on day-to-day basis and shall dispose it of within sixty days of its receipt.

(2)          In dealing with a representation under sub-rule (1), the provisions of section 478, shall, as far as possible, be applicable.

8.            Fee. - A fee of ten thousand rupees shall be payable for making a representation to the Authority under sub-section (1) of section 295.

PART - III

MANAGEMENT BY THE ADMINISTRATOR

9.            Management of company. - Where an administrator has been appointed, he shall manage the company in accordance with the provisions of the Ordinance, the rules made thereunder and in accordance with such directions, not inconsistent with the provisions of the Ordinance or rules made thereunder, as the Authority may give from time to time.

10.          Best possible profits and benefits to be earned. - The administrator shall manage the affairs of the company and carry on its business in the best possible manner so as to earn the best possible profits and benefits for the company and its members and creditors.

11.          Handling over of company's affairs. - In the event of an order under sub-section (6) of section 295 whereby the purpose of the order for appointing the administrator has been fulfilled and the company has been permitted to appoint directors, on appointment of such directors, the administrator shall hand over the management and affairs of the company, including records thereof, to the said directors.

12.          Appointment of committee. - The Authority may appoint a committee consisting of representatives of the creditors and shareholders to offer its comments and suggestions to the Authority regarding the administrator with particular reference to : -

(a)          the affairs of the company;

(b)          disposal of capital assets; and

(c)           any other related matter.

ANNEXURE

See rule 4(1)

INFORMATION TO BE SUPPLIED WITH THE REPRESENTATION

1.            Name and status of the company

2.            Names of the directors at the time of representation

3.            Name of the chief executive of the company

4.            Registered office of the company

5.            Nature of business of the company

6.            Paid-up capital of the company

7.            Amount of loans with dates thereof

(i)            Long-term loans with fate of mark-up

(ii)           Bridging advance with rate of mark-up

(iii)          Working capital loans with rate of mark-up

(iv)          Any other loan

8.            Repayment schedule of the respective loans

9.            Repayments made, if any, with their respective dates

10.          Total amount of outstanding loan with period thereof with percentage of the paid-up capital

11.          Nature of grievances

12.          Statement and documents filed in support of item 10, if any, with complete address of the creditors

 

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