Section 23: Circumstances in which modaraba may be wound up by the Tribunal

23. Circumstances in which modaraba may be wound up by the Tribunal.__ (1) A modaraba shall be wound up by the Tribunal on an application made by the Registrar if__ (i) in the case of a modaraba for a fixed period on the expiry of that period or, in the case of a modaraba for a specific purpose on the accomplishment of its purpose, the declaration referred to in section 22 has not been filed with the Registrar within the period specified in that section; (ii) in the case of any modaraba, the Registrar has declared that__ (a) the modaraba is unable to discharge its liabilities; (b) the accumulated losses of the modaraba exceed fifty percent of the total amount subscribed by the holders of the Modaraba Certificates; or (c) the business of the modaraba is being, or has been, conducted for a fraudulent purpose or with intent to defraud the holders of the Modaraba Certificates, or its creditors or any other person; 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. 3. (iii) the Tribunal is of opinion that it is just and equitable that the modaraba should be wound up. (2) The Registrar may make an application to the Tribunal for the winding up of a modaraba on receipt of an application under sub-section (1) of section 21 or of the report of an enquiry under that section relating to the modaraba. (3) No application shall be made by the Registrar under sub-section (1) or (2) without giving the modaraba company an opportunity of being heard.

Effective date: 1980-01-01

Related sections