Section 20: Appointment of administrator

20. Appointment of administrator.__ (1) If__ (a) the Registrar has reason to believe that a modaraba company has been conducting the affairs of a modaraba in a manner prejudicial to the interest of the modaraba or the holders of Modaraba Certificates or in a fraudulent or unlawful manner or has committed a default in complying with the provisions of this Ordinance or the rules or with any direction made or given thereunder or any condition of the modaraba; (b) the registration of a modaraba company has been cancelled; or (c) any other modaraba under the management of the modaraba company has been ordered to be wound up by the Tribunal, the Registrar, after affording the modaraba company an opportunity of being heard, may, without prejudice to any other action under the law, by order in writing,__ (i) appoint an administrator to take over and manage the modaraba in place of the modaraba company for such period as the Registrar may specify; or 1Subs. by Act 4 of 1999, s.13. 2Added by die Modaraba Companies and Modaraba (Floatation and Control) (Amdt.) Act, 1985 (4 of 1985). s. 2. (ii) require the modaraba company to carry out such changes in the management and procedure as may be specified; or (iii) remove the modaraba company and appoint another modaraba company in its place to manage the modaraba. (2) The Registrar shall not make an order under sub-section (1) without the approval of the 1[Commission].

Effective date: 1980-01-01

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