Section 17: Conditions applicable to modaraba company — Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980

Current legal status not independently verified — Source: Pakistan Code (single official PDF, 2026-08-21). Whether this provision is still in force has not been independently verified.

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17. Conditions applicable to modaraba company.__ (1) No modaraba company shall engage in any business which is of the same nature and competes with the business carried on by a modaraba floated or controlled by it. (2) No modaraba company or any of its directors or officers or their relatives shall obtain loan, advance or credit from the funds of the modaraba or on the security of the assets of the modaraba. Explanation.__ In this sub-section “relative”, in relation to a director or officer, means the spouse, brother or sister or any of the lineal ascendants or decendants of the director or officer. (3) A modaraba company shall subscribe in each modaraba floated by it not less than ten percent of the total amount of Modaraba Certificates offered for subscription.

Effective date: 1980-01-01

Related sections

Section 16: Prohibition of false statement, etc. No modaraba company, director, officer, employee or Section 18: Remuneration of modaraba company. The remuneration of a modaraba company in Section 15: Audit of accounts Section 19: Cancellation of registration Section 14: Preparation and circulation of annual accounts, reports, etc Section 20: Appointment of administrator

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