Section 60A: Prohibition on issuance of bearer shares or bearer shares warrants, etc.

11[60A. Prohibition on issuance of bearer shares or bearer shares warrants, etc.—(1) Notwithstanding anything contained in the National Investment (Unit) Trust Ordinance, 1965 (VII of 1965) or any other law for the time being in force, no company shall allot, issue, sell, transfer or assign any bearer shares, bearer shares warrants or any other equity or debt security of a bearer nature, by whatever name called, and any allotment, issue, sale, transfer, assignment or other disposition of any such bearer shares or bearer share warrants or any other equity or debt security of a bearer nature, shall be void. Explanation.—For the purpose of this section, the term “bearer shares or bearer share warrants” means a negotiable instrument that accords ownership or control in a company to the person who possess such instrument and includes any other equity or debt security of a bearer nature. (2) All existing bearer share or bearer share warrants, if any, shall either be registered or cancelled, in such manner and within such period, as may be specified. (3) Any contravention or default in complying with the requirements of this section shall be liable in case of,— (a) a director or officer of the company or any other person, to a penalty which may extend to one million rupees; and (b) the company, to a penalty which may extend to ten million rupees.]

Effective date: 2017-05-30

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