Section 70: Public examination of directors and auditors etc., in respect of a banking company under scheme of arrangement

70. Public examination of directors and auditors etc., in respect of a banking company under scheme of arrangement.-- (1) Where an application for sanctioning a compromise or arrangement in respect of a banking company is made under section 153 of the 1[Companies Ordinance, 1984 (XLVII of 1984)], or where such sanction has been given and the High Court is of opinion, whether on a report of the State Bank or otherwise, that any person who has taken part in the promotion or formation of that banking company or has been a director or auditor thereof should be publicly examined, it may direct such examination of such person and the provisions of section 66 shall, as far as may be, apply to such banking company as they apply to a banking company which is being wound up. (2) Where a compromise or arrangement is sanctioned under section 153 of the 1[Companies Ordinance, 1984 (XLVII of 1984)], in respect of a banking company, the provisions of section 235 of that Act and of section 67 shall, as far as may be, apply to such banking company as they apply to a banking company which is being wound up as if the order sanctioning the compromise or arrangement were an order for the winding up of that banking company. (3) Where a scheme of reconstruction or amalgamation of a banking company has been sanctioned by the 2[Federal Government] under section 47 and the 2[Federal Government] is of opinion that any person who has taken part in the promotion or formation of that banking company or has been a director or auditor thereof should be publicly examined, that Government may apply to the High Court for the examination of such person and if on such examination the High Court finds (whether a fraud has been committed or not) that that person is not fit to be a director of a company or to act as an auditor of a company or to be a partner of a firm acting as such auditors, the 2[Federal Government] shall make an order that that person shall not, without the leave of the 2[Federal Government], be a director of , or in any way, whether directly or indirectly, be concerned or take part in the management of any company or, as the case may be, act as an auditor of, or be a partner of a firm acting as auditors of, any company for such period not exceeding five years as may be specified in the order. (4) Where a scheme of reconstruction or amalgamation of a banking company has been sanctioned by the 1[Federal Government] under section 47, the provision of section 235 of the 2[Companies Ordinance, 1984 (XLVII of 1984)], and those of section 67 shall, as far as may be, apply to the banking company as they apply to a banking company which is being wound up as if the order sanctioning the scheme of reconstruction or amalgamation, as the case may be, were an order for the winding-up of the banking company; and any reference in the said section 235 to the application of the official liquidator shall be construed as a reference to the application of the 1[Federal Government.] 3[(5) The provisions of sub-sections (3) and (4) shall apply to a banking company in respect of which a scheme of amalgamation has been sanctioned by the State Bank under section 48, and in their application to such a banking company shall have effect as if-- (a) the word "reconstruction or" wherever occurring were omitted; and (b) for the words 4[Federal Government] wherever occurring the words "State Bank" were substituted. (6) The provisions of sub-sections (3) and (4) shall apply to a banking company other than a banking company in relation to which provision has been made in the preceding sub-sections and, in their application to such a banking company, shall have effect as if-- (a) in sub-section (3),-- (i) for the words and figure "where a scheme of reconstruction or amalgamation of a banking company has been sanctioned by the 4[Federal Government] under section 47 and" the word "If" were substituted; and (ii) for the words 4[Federal Government] wherever occurring the words "State Bank" were substituted; and (b) in sub-section (4),-- (i) the words, figure and comma "Where a scheme of reconstruction or amalgamation of a banking company has been sanctioned by the 4[Federal Government] under Section 47," were omitted; (ii) for the words and commas "order sanctioning the scheme of reconstruction or amalgamation, as the case may be," the words and figure "making of the application by the State Bank under the said section 235" were substituted; and (iii) for the words 4[Federal Government] twice occurring the words "State Bank" were substituted.]

Effective date: 1962-06-07

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