33/2019 Judicial Companies Misc. MUHAMMAD YOUSUF AHMED & OTHERS (Applicant) V/S ARTISTIC DENIM MILLS LIMITED (Respondent)
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Junaid Ghaffar(Author)
33/2019 Judicial Companies Misc. MUHAMMAD YOUSUF AHMED & OTHERS (Applicant) V/S ARTISTIC DENIM MILLS LIMITED (Respondent) Sindh High Court
Bench: Hon'ble Chief Justice Mr. Justice Muhammad Junaid Ghaffar(Author) Order Date: 16-APR-20
The Petitioners hold 14.45% shares in respondent Company and are aggrieved by the notice as well as the proceedings of the impugned Meeting dated 19.10.2019 and the resolutions passed thereon, whereby, related party transactions were approved in respect of 2 Companies, which have certain common Directorship. It is their case that they hold more than 10% of the shareholding and are, therefore, qualified to institute present proceedings, under s.136 of the Companies Act, 2017 which according to them has seriously prejudiced their interests. According to them statement of material facts under Section 134(3) of the Act, annexed with the impugned notice of meeting, failed to include the minimum information required under Regulation-5 of the Company (Related Parties Transactions and Maintenance of Related Records) Regulations, 2018, whereas, the meeting was also conducted without following proper procedure and has deprived the Petitioners from exercising their rights. However, the Petitioners have failed to make out a case for indulgence; hence, this petition fails and is accordingly dismissed with pending applications.