Section 5: Eligibility for registration

5. Eligibility for registration.__ (1) A company shall be eligible for registration as a modaraba company if it fulfils the following condition, namely:__ (a) that it is registered under the Companies Act, 1913 (VII of 1913), or is a body corporate formed under any law in force and owned or controlled, whether directly or through a company or corporation, by the Federal Government or a Provincial Government; (b) that, being a company solely engaged in the floatation and management of modaraba, it has a paid up capital of not less than 1[two and a half million] rupees; (c) that, none of its directors, officers or employees has been convicted of fraud or breach of trust or of an offence involving moral turpitude; (d) that, none of its directors, officers or employees has been adjudged an insolvent or has suspended payment or has compounded with his creditors. (e) that, its promotors are, in the opinion of the Registrar, persons of means and integrity and have knowledge of matters which the company, may have to deal with as a modaraba company; and (f) that, being a company also engaged in business other than floatation and management of modaraba, it has paid up capital of such amount and of such nature as may be prescribed. 1Subs. by the Modaraba Companies and Modaraba (Floatation and Control) (Second Amendment) Act, 1985 (13 of 1985), s. 2.

Effective date: 1980-01-01

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