Section 5: Transfer and vesting of assets, contracts, liabilities, proceedings and undertakings

5. Transfer and vesting of assets, contracts, liabilities, proceedings and undertakings.— (1) Subject to section 3, after the registration of the company, the Federal Government shall by an order, published in the official Gazette, direct that all the assets, contracts, liabilities, proceedings and undertakings of the R.D.F.C. and S.B.F.C. stand transferred to, and vest in the company on the date specified therein, on such terms and conditions as may be determined by the Federal Government in this behalf. (2) The order shall, inter alia, provide for the following, namely:— (a) the transfer of all the assets, contracts, liabilities, proceedings and undertakings of the R.D.F.C. and S.B.F.C., to the company; (b) the allotment of shares or debentures of the company to the shareholders, debenture-holders or bond-holders of the R.D.F.C. and S.B.F.C. in proportion to their shares, debentures, bonds or other securities in the R:D.F.C. or S.B.F.C, as the case may be, after determining the net asset value of both the R.D.F.C. and S.B.F.C. the effective date; (c) the dissolution of the R.D.F.C. and S.B.F.C. from the effective date; and (d) such incidental, consequential and supplemental matters as are necessary to secure the amalgamation and transfer under this ordinance. (3) Without prejudice to the provisions of section 146 of the Companies Ordinance,1984 (XLVII of 1984), the company shall, upon transfer, continue all undertakings of the R.D.F.C. and S.B.F.C. as were being carried on immediately prior to the effective date.

Effective date: 2001-01-01

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