Section 22: Circumstances in which modaraba may be wound up voluntarily

22. Circumstances in which modaraba may be wound up voluntarily.__ (1) A modaraba floated for a fixed period or for a specific purpose shall be wound up by the modaraba company itself 1Subs. by Act 4 of 1999, s.13. on the expiry of the period fixed for the modaraba or the accomplishment of the purpose of the modaraba, as the case may be, provided the following conditions are fulfilled, namely:__ (a) all the directors of the modaraba company shall make a declaration verified by an affidavit to the effect that they have made a full enquiry about the affairs of the modaraba and, having done so, have formed the opinion that the modaraba will be able to discharge its liabilities, pay the amount subscribed by the holders of Modaraba Certificates and all their other dues in full within a period of twelve months, from the date of expiry of the period fixed for the modaraba or the accomplishment of the purpose of the modaraba, as the case may be; (b) the declaration referred to in clause (a) shall be supported by a report of the auditor of the modaraba on the affairs of the modaraba and shall have no effect unless it is filed with and approved by the Registrar within ninety days of the date of expiry of the period fixed for the modaraba or the accomplishment of the purpose of the modaraba, as the case may be. (2) Any person aggrieved by the decision of the Registrar under clause (b) of sub-section (1) may prefer an appeal to the 1[Commission] within thirty days of the day on which the decision is given. 2[(3) An appeal preferred under sub-section (2) shall be disposed of by the 1[Commission] after giving the appellant an opportunity of being heard.].

Effective date: 1980-01-01

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