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  "title": "THE MARKETING OF PETROLEUM PRODUCTS (FEDERAL CONTROL) ACT, 1974.(Repealed by ord.89 of 02 s.3)",
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  "text": "1  \r\nTHE MARKETING OF PETROLEUM PRODUCTS (FEDERAL CONTROL) ACT, \r\n1974. \r\n \r\n1ACT NO. XVII OF 1974 \r\n \r\n[15th March, 1974] \r\n \r\nAn Act to provide for the management and development of marketing facilities \r\nin petroleum products. \r\n \r\nWHEREAS  it  is  expedient  to  provide  for  the  management  and  development  of \r\nmarketing facilities in petroleum products and for matters connected therewith; \r\n \r\nIt is hereby enacted as follows:— \r\n \r\n1.  Short  title,  extent  and  commencement.  —(1)  This  Act  may  be  called  the \r\nMarketing of Petroleum Products (Federal Control) Act, 1974. \r\n(2) It extends to the whole of Pakistan. \r\n(3) It shall come into force at once. \r\n \r\n2. Definitions. In this Act, unless there is anything repugnant in the subject or \r\ncontext,— \r\n \r\n(a)  \"bank  rate\" means  the  bank  rate  determined  and  made  public  under  the \r\nprovisions of the State Bank of Pakistan Act, 1956 (XXXIII of 1956). \r\n \r\n(b)  \"Board  of  Management\"  means  the  Board  of  Management  set  up  under \r\nsection 7; \r\n \r\n(c) \"corporation\" means a corporation or authority wholly owned or controlled by \r\nthe Federal Government to which a marketing company is transferred under \r\nthis Act; \r\n \r\n(d) \"creditor\" means any person to whom a marketing company owes any amount \r\nof money; \r\n \r\n(e) \"debtor\" means a person who owes any amount of money to  a marketing \r\ncompany; \r\n \r\n(f)  \"managed  company\"  means  a  company in  respect  of  which  a  Managing \r\nDirector has been appointed; \r\n \r\n(g) \"Managing Director\", in relation to a m arketing company, means the \r\nManaging Director appointed by the Federal Government under this Act, in \r\nrespect of such company; \r\n \r\n1 For Statement of Objects and Reasons, see Gaz. of P., 1974, Ext., Pt. III, p. 106. \r\n2  \r\n(h) \"marketing company\" means a company which has, during the twelve months \r\npreceding-the commencement of this Act, been wholly or mainly engaged in \r\npurchasing or obtaining petroleum products from local refineries, or from or \r\nthrough sources abroad, for selling, distributing or marketing di rectly or \r\nthrough its agents or dealers at its dispensing outlets or filling stations; \r\n \r\n(i)  \"petroleum  products\"  means  motor  gasolene,  diesel  oils,  kerosene  and \r\nfurnace oil; \r\n \r\n(j) \"previous management\" means a person, board of directors or other body or \r\nauthority in which the management of a marketing company vested imme- \r\ndiately before the appointment of a Managing Director in respect thereof; \r\n \r\n(k) \"shareholder\" means a shareholder in the share capital of a company, and \r\nincludes a stockholder; \r\n \r\n(1) words and expressions used but not defined in this Act, shall have the same \r\nmeaning as in the Companies Act, 1913 (VII of 1913). \r\n \r\n3. Declaration. It is hereby declared that development under Federal control of \r\nmarketing in petroleum products is necessary in the public interest. \r\n \r\n4. Act to override other la ws. The p rovisions of this  Act shall have effect \r\nnotwithstanding anything contained in the Companies Act, 1913 (VII of 1913)  or the \r\nCompanies (Managing Agency and Election of Directors), Order, 1972 (P.O. No. 2 of \r\n1972), or any other law for the time being in force or any agreement, contract, memorandum \r\nor articles of association of a Company. \r\n \r\n5. Power to take over management or acquire shares or business of marketing \r\ncompany.  —(1)  The  Federal  Government  may,  if  it  considers  necessary in  the  public \r\ninterest so to do, by an order,— \r\n \r\n(a) take over the management of any marketing company and, as from the date of \r\nsuch order, the p revious, management shall stand divested of such manage- \r\nment; \r\n \r\n(b)  acquire  the  whole  Or  a  portion  of  the  shares  from  all  or  any  of  the \r\nshareholders of such marketing company and, as from the date of such order, \r\nthe shares so acquired shall vest in the Federal Government: \r\n \r\nProvided that no order shall be m ade under this section for the acquisition of the \r\nshares held in a marketing company by an institution owned or controlled by the  Federal \r\nGovernment, including the National Investment Trust and the Investment Corporation of \r\nPakistan or the shares held by a foreign investor: \r\n \r\nProvided further that the Federal Government may, by noti fication in the official \r\nGazette, exempt from acquisition shareholdings of any s hareholder up to such maximum \r\namount as may be specified in the notification. \r\n \r\n(2) Where the Federal Government makes an order under sub-section (1) for t aking \r\nover the management of any m arketing company, no dealings or business relating to the \r\nshares of such company shall be transacted on any stock exchange and no transfer of such \r\n3  \r\nshares shall be registered in the share register of the company for a period of ninety days \r\nfrom the date of such order or such shorter period as may be notified by the Government. \r\n \r\n6. Appointment of Managing Director. —(1) Where the Federal Government has \r\nmade  an  order  under  section  5  in  respect  of  a  marketing  company,  it  may  appoint  a \r\nManaging Director in respect of such company. \r\n \r\n(2)  Upon  the  appointment  of  a  Managing  Director  in  respect  of  a  marketing \r\ncompany, the administration and the management of the affairs of the company shall vest in \r\nthe  Managing  Director,  and  any  person  or  authority  exercising  or  having  the  right  to \r\nexercise, immediately before such appointment, any powers or functions in relation to the \r\nmanagement of the company shall cease to exercise or to have the right to exercise such \r\npowers or functions. \r\n \r\n(3) The Managing Director shall— \r\n \r\n(a) hold office during the pleasure of the Federal Government; \r\n \r\n(b) in the discharge of his functions, be subject to such orders and such directions \r\nof the Federal Government and of the Board of Management as the Federal \r\nGovernment or the Board of Management may from time to time give in \r\nwriting; and \r\n \r\n(c) receive such remuneration and be subject to such other terms and conditions \r\nof appointment and service as the Federal Government may determine. \r\n \r\n(4) The Managing Director appointed in respect of a marketing company sh all \r\nexercise and perform all the powers and functions of the board of directors of the company. \r\n \r\n7. Board of Management —(1) The Federal Government may set up a Board of \r\nManagement to control, manage and direct the affairs of the marketing companies in respect \r\nof which Managing Directors have been appointed. \r\n \r\n(2) The  Board of Management shall consist of a Chairman and such number of \r\nmembers, not exceeding nine, as the Federal Government may appoint. \r\n \r\n(3) The Board of Management shall be a body corporate having perpetual succession \r\nand a common seal, with power to acquire and hold property and shall by its name sue and \r\nbe sued. \r\n \r\n(4) The Chairman and members of a Board of Management shall hold office during \r\nthe pleasure of the Federal Government on such terms and conditions as it may determine. \r\n \r\n8. Functions of Board. —(1) The functions of the Board of Management shall be to \r\nensure that the marketing companies in respect of which it is to exercise and perform its \r\npowers and functions under this Act are managed efficiently .and in accordance with sound \r\nbusiness \r\nprinciples and in respect of any such marketing company the Board may, from time to \r\ntime,— \r\n \r\n(a)  exercise  such  of  the  powers  of  the  Managing  Director  and  issue  such \r\ndirections to him as it may consider necessary; \r\n4  \r\n(b) require the Managing Director to furnish it with such information relating to \r\nthe affairs of the company in respect of which he is the Managing Director as \r\nthe Board of Management may require in connection with the performance of \r\nits functions; and \r\n \r\n(c) remove from office its auditor and appoint another person who is a Chartered \r\nAccountant  within  the  meaning of  the  Chartered  Accountants  Ordinance, \r\n1961  (X  of  1961),  to  hold  that  office  for  such  period  and  on  such \r\nremuneration   payable   by   the   marketing   company   as   the   Board   of \r\nManagement may determine. \r\n \r\n(2) The exercise by the Board of Management under subsection (1) of the powers of \r\na Managing Director shall have effect as if it were the exercise of those powers by the \r\nManaging Director himself. \r\n \r\n(3) It shall be the duty of a Managing Director to comply with all directions issued to \r\nhim by t he Board of Management under sub-section (1) and to furnish the Board of \r\nManagement with the information required by it. \r\n \r\n(4) The  Federal Government may entrust to the Board of Management such other \r\nfunctions in relation to any other company or establishment as it may deem fit and upon \r\nsuch entrustment reference to 'Managing Director' in this section and in clause (b) of sub- \r\nsection (2) of section 6 and sub-section (2) of section 9 shall be deemed to include a \r\nreference to the person or authority in whom the management of the affairs of the company \r\nor establishment vests. \r\n \r\n9. Fund of the Board. —(1) There shall be constituted for the Board of Management \r\na fund to which shall be credited all sums received by the Board under sub-section (2) and \r\nout of which shall be defrayed all expenditure incurred by the Board  of Management, \r\nincluding \r\nexpenditure on the emoluments of the Chairman, members, officers, servants, experts and \r\nconsultants of the Board. \r\n \r\n(2) The Managing Director in respect of every company shall make to the Board of \r\nManagement each year such payment to enable it to defray its expenses as the Board may, \r\nwith the prior approval of the Federal Government in writing, demand of him: \r\n \r\nProvided that the aggregate amount of p ayments so demanded of the  Managing \r\nDirectors in any year shall not exceed by more than ten per cent the amount of the estimated \r\nexpenditure of the Board of Management in that year. \r\n \r\n \r\n \r\ntime \r\n10. Officers, etc., of the Board. —(1) The Board of Management may from time to \r\nappoint such officers, servants, experts and consultants as it may deem fit. \r\n \r\n(2) The Board of Management may appoint one or more committees of the Board \r\nwith such composition and to perform such functions as it may determine. \r\n \r\n11. Adoption of balance. The general meeting of a marketing company before \r\nwhich a balance-sheet is laid shall not, if the Federal Government by order in writing so \r\ndirects, have the authority to refuse to adopt the balance-sheet, but nothing in this section \r\nshall be construed to prevent any shareholder from expressing his views on the financial \r\n5  \r\naffairs of' the company and a record of the proceedings of every such meeting shall be \r\nforwarded to the Federal Government not later than fifteen days of the meeting. \r\n \r\n12. Regulations. —(1) The Board of Management may, with the prior approval of \r\nthe Federal Government, make such regulations as appear to it to be necessary for carrying \r\nout the purposes of this Act. \r\n \r\n(2) In particular and without prejudice to the generality of the foregoing power, such \r\nregulations may provide for the manner » of payment and collection of the payment required \r\nto be made by the Managing Directors under sub-section (2) of section 9. \r\n \r\n13. Delegation of powers, etc. —(1) The Federal Government may, by notification \r\nin the official Gazette, direct that all or any of its powers under this Act shall, in such \r\ncircumstances and subject to such conditions as may be specified in the notification, be \r\nexercisable also by the Board of Management. \r\n \r\n(2) The Federal Government may from time to time issue such directions to and call \r\nfor such information or report from, the Board of Management as it may deem necessary. \r\n \r\n(3) T he Board of Management may, with the previous approval in writing of the \r\nFederal Government, direct that all or any of its powers under this  Act shall, in such \r\ncircumstances and subject to such conditions as may be specified by the  Board of \r\nManagement, be exercisable by the Managing Director. \r\n \r\n14. Acquisition of shares. Where, under section 5 of this  Act, the Federal \r\nGovernment orders acquisition of the  whole or a portion of the shares of a marketing \r\ncompany, it shall acquire the shares from the shareholders of the company within a period of \r\nninety d ays on payment of such compensation as may be  determined by the  Federal \r\nGovernment on the basis of the principles set out in the Schedule. \r\n \r\n15. Reorganisation. —(1) In respect of any marketing company, where the Federal \r\nGovernment  holds  or  has  acquired  the  whole  or  majority portion  of  the  shares  in  the \r\ncompany carrying the controlling voting rights the board of Management may draw-up a \r\nplan                                                                                                                                         for \r\nthe  reorganisation  of  such  a  company  with  a  view  to  increasing  its  efficiency  and \r\nrationalising its operations, hereafter in this section referred to as the reorganisation plan. \r\n \r\n(2) The reorganisation plan may in clude provision for amalgamation of managed \r\ncompanies and may provide for a scheme for the reconstruction of any such company or \r\ncompanies, or amalgamation of any s uch two companies or more companies and such a \r\nscheme may provide for all or any of the matters contained in section 153 or 153B of the \r\nCompanies Act, 1913 (VII of 1913) or for alteration of shares capital or loan structure and \r\nalteration of existing or  adoption of fresh memorandum or articles of association of such \r\ncompanies. \r\n \r\n(3)  The  reorganisation  plan  shall  be  submitted  to  the  Federal  Government  for \r\napproval and shall be simultaneously publish ed in the official Gazette accompanied by a \r\ncertified statement showing the value of the holdings of the shares or proprietary interests of \r\nthe Federal Government, in the company covered by the plan on the date of the submission \r\nof the plan, and, from the date of such submission, dealings in shares of companies covered \r\nby the  plan in any of the stock exchanges shall remain suspended until the Federal \r\nGovernment has approved the reorganisation plan. \r\n6  \r\n(4)  The  reorganisation  plan  shall  be  implemented  and  shall  take  effect  in  such \r\nmanner and at such time and with such modifications as may be approved by the Federal \r\nGovernment. \r\n \r\nExplanation.—For  the   purpose   of  this   section   and   section   27,   the  Federal \r\nGovernment  shall  be  deemed  to  have  a  majority portion  of  the  shares  in  a  marketing \r\ncompany if the face value of the shares of such company owned or controlled by the Federal \r\nGovernment exceeds fifty per cent of the total voting rights in the issued and paid-up share \r\ncapital of the company. \r\n \r\n1[(5) After the Federal Government has approved the reorganisation plan under sub- \r\nsection (4), it may, for the purpose of rationalising the pay scales of the employees of the \r\ncompany reconstructed or amalgamated under the said plan, after the terms and conditions \r\nof service of such employees as to their remuneration and perquisites: \r\n \r\nProvided that the terms and conditions shall not be so altered under this sub-section \r\nas to be less favourable than those to which such employees were entitled before their \r\ntransfer to the said company.]. \r\n \r\n16. Continuance in service. In the case of a managed company, all person employed \r\nin, by or for the purpose of the business of the company, by whomso ever appointed or \r\nengaged, shall continue in their respective employments on the same remuneration and other \r\nconditions of service as were applicable to them immediately before the appointment of the \r\nManaging Di rector in respect of that company, unless the Managing Director directs \r\notherwise in a p articular case of th eir terms and conditions of s ervice are altered in \r\naccordance with the law or any rules applicable to such managed company. \r\n \r\n17. Prohibition. No person, other than the Board of Management, shall, except \r\nunder  the  authority  of  the  Federal  Government,  give  any  instructions  to  a  Managing \r\nDirector, nor shall any person in any manner obstruct him in the discharge of his functions. \r\n \r\n18. Debtor —(1) The Federal Government may, by notice in writing, call upon a \r\ndebtor to pay to the Federal Government, or to the marketing company specified in such \r\nnotice, the amount of money due from him to the, company, within a period of thirty days, \r\ncommencing from the date of receipt of such notice by the debtor. \r\n \r\n(2) Where a debtor fails to pay the amount due, within the time specified in the \r\nnotice, the Managing Director of the company to which such amount is due shall have the \r\nsame powers of effecting recovery of such amount as the Industrial Development Bank of \r\nPakistan has under sections 39,40 and 41 of the Industrial Development Bank of Pakistan \r\nOrdinance, 1961 (XXXI of 1961), in respect of sums due to the said Bank. \r\n \r\n19. Creditor. —(1) A creditor of a managed company may apply to the Federal \r\nGovernment for payment to him of the amount due to him from the company. \r\n \r\n \r\n1Ins by the Marketing of petroleum Products (Federal Control) (Amdt.) Ord. 1979 (59 of 1979), s.2. \r\n7  \r\n(2) The Federal Government may, on receipt of an application under sub-section (1) \r\nand after such enquiry as it may deem fit, direct the managed company— \r\n \r\n(a) to repay the amount due to the creditor in such installments and within such \r\nperiod as may be specified in the direction; or \r\n \r\n(b) to convert the amount due to the creditor into share capital of the company. \r\n \r\n(3) If a managed company fails to comply with a direction issued to it by the Federal \r\nGovernment under  sub-section (2), the  federal  Government may order  that the  amount \r\nspecified in the direction be recovered from it as an arrear of land revenue and paid to the \r\ncreditor. \r\n \r\n20.  Revocation  of  contracts.  If  any contract  or  agreement  entered  into  or  any \r\nobligation undertaken by any previous management of a managed company is declared by \r\nthe Federal Government, after such inquiry as ii may deem 111 and giving an opportunity to \r\nthe person or persons with whom such contract or agreement was entered into or to whom \r\nsuch obligation was undertaken to show cause why such declaration shall not be made, to be \r\nagainst the interest of the company,  such  contract, agreement or obligation shall stand \r\nrevoked and the marketing company shall not be liable for any loss or damage suffered by \r\nthe previous management by reason of such revocation: \r\n \r\nProvided that this section shall not be construed as preventing any party to a contract, \r\nagreement or obl igation so revoked from initiating action in a court of l aw against the \r\nprevious management. \r\n \r\n21. Right of shareholders. Any person having a share in a marketing company shall \r\nbe entitled to complain to the Board of Management or the Federal Government in respect of \r\nany action  taken  by the  Managing  Director  in  relation  to  the  affairs  of  the  marketing \r\ncompany. \r\n \r\n22.  Vesting  of  business  acquired  by  Federal  Government  in  a  corporation. \r\nWhere the Federal Government has taken over the management and acquired the whole of \r\nthe shares of a marketing company under section 5, it may transfer the management, and \r\nmay also transfer such shares in such marketing company, to any corporation wholly owned \r\nor controlled by the Federal Government or a corporation to be set-up for the purpose, on \r\nsuch terms and conditions as the Federal Government may specify. \r\n \r\n23. Transfer of service of employees of a marketing company to corporation. — \r\n(1) Where the management of a marketing company is transferred to a corporation under \r\nsection 22, every whole time employee of the marketing company who was employed by \r\nsuch company immediately before the date of transfer of the management to the corporation \r\nshall, on and from the date of such transfer, become an employee of the corporation and \r\nshall hold his office therein on the same terms and conditions, including remuneration, \r\ntenure of office, rights and privileges, as to pension and gratuity and other matters, as were \r\napplicable  to  him  immediately before  the  date  of transfer  until  his  employment  in  the \r\ncorporation is terminated or his terms and conditions of service are altered in accordance \r\nwith law or any rules applicable to such corporation. \r\n \r\n(2) Where any employees of a managed company have,, under the provisions of sub- \r\nsection (1), become the employees of a corporation, the corporation may, for the purpose of \r\nrationalising the pay scales of such employees or for any other good any adequate reason, \r\nalter the terms and conditions of service of the employees as to their remuneration in such \r\n8  \r\nmanner as it thinks fit, and, if the alteration is thus not acceptable to any employee, the \r\ncorporation may terminate his employment by giving him compensation equivalent to his \r\nremuneration for three months or, if his  contract of service provides for a shorter notice for \r\ntermination of employment, for the period so provided. \r\n \r\nExplanation.— The compensation payable to an employee under this sub-section \r\nshall be in addition to and not in derogation of any of  his rights as to pension, gratuity, \r\nprovident fund money or other benefit to which he may be  entitled under his contract of \r\nservice. \r\n \r\n(3) If any question arises as to whether any person was a whole time employee of a \r\nmarketing company i mmediately before its management was transferred to a corporation \r\nunder section 22, the question shall be referred to the Federal Government whose decision \r\nshall be final. \r\n \r\n(4) The transfer of the services of any employee of a marketing company to  a \r\ncorporation shall not, except as provided in this section, entitle any such employee to any \r\ncompensation  and  no  such  claim  shall  be  entertained  by  any  court,  tribunal  or  other \r\nauthority. \r\n \r\n24. General effect of vesting management in corporation. —(1) Where the \r\nmanagement of managed company has been vested in a corporation under section 22, all \r\ncontracts agreements and other instruments of whatever nature subsisting or having effect \r\nimmediately before the date of vesting, to which, such marketing company was a party or \r\nwhich were in favour of or against such marketing company shall, subject to the provisions \r\nof section 20, be of as full force and effect against or in favour of the corporation, as the case \r\nmay be, and may be enforced or acted upon as fully and effectually, as if, instead of the \r\ncompany the corporation had been a party thereto or as if they had been entered into or \r\nissued in favour of the corporation. \r\n \r\n(2)  If,  on  the  date  of transfer  of the  management  of a managed  company to  a \r\ncorporation, any suit,  appeal or other legal proceeding of by or  against such company \r\nwhatever nature, is pending, it shall not abate, be discontinued or be in any way prejudicially \r\naffected by reason of such transfer or anything done under this Act, but the suit appeal or \r\nother proceeding may be continued, prosecuted and enforced by or against the corporation. \r\n \r\n25. Duty to deliver possession of property and documents relating thereto. —(1) \r\nWhere the management of a marketing company has been transferred to a corporation under \r\nsection 22, then— \r\n \r\n(a) every person in whose possession, custody or control there is any property of \r\nsuch marketing company s hall deliver the property to  the corporation \r\nforthwith; and \r\n \r\n(b) any person who, on the date of transfer of the management of the company to \r\nthe corporation, has in his possession, custody or control any bo oks, \r\ndocuments, or other record relating to such marketing company shall be liable \r\nto account for t he said books, documents and record to the corporation, and \r\nshall deliver them to the corporation or to such person as the corporation may \r\ndirect. \r\n9  \r\n(2) Without prejudice to the other provisions of sub-section (I), it shall be lawful for \r\nthe corporation to take all necessary steps for acquiring possession of all properties which \r\nhave been transferred to and vested in it under this Act. \r\n \r\n26. Provident superannuation and other like funds. —(1) Where a marketing \r\ncompany the management of which has been transferred to a corporation under section 22, \r\nhas established a provident or superannuation fund or any other like fund for the benefit of \r\nits employees and has constituted a trust in respect thereof (hereafter in this section referred \r\nto as an existing trust), the moneys standing to the credit of any such fund on the occasion of \r\nsuch transfer; together with any oth er assets belonging to such fund, shall, subject to the \r\nprovisions of sub-section (2), stand transferred to and vest in the corporation on the date the \r\ncompany is transferred to it, free from any such trust. \r\n \r\n(2) Where all the employees of any such company do not become employees of a \r\ncorporation under section 23, the moneys and other assets belonging to any such fund as it \r\nreferred to in subsection (1) shall be apportioned between the persons responsible for the \r\nfund and the corporation in such manner as may be prescribed by rules, and, in the case of \r\nany dispute regarding such apportionment, the decision of the Federal Government shall be \r\nfinal. \r\n \r\n(3) A corporation shall, as soon as may be  after the management of a marketing \r\ncompany is transferred to it under section 22, constitute in respect of the moneys and other \r\nassets which are transferred to and vested in it under this section, one or more trusts having \r\nobjects as similar to the objects of the existing trust as in the circumstances may be \r\npracticable. \r\n \r\n(4)  Where  all  the  moneys  and  other  assets  belonging  to  an  existing  trust  are \r\ntransferred to and vested in a corporation under this section, the persons responsible for such \r\ntrust shall, as from the date of su ch transfer, be discharge from the trust, except as respects \r\nthings done or omitt ed to be done before the date of t ransfer of the  management of t he \r\nmarketing company. \r\n \r\n27. Minimum return. —(1) Where the Federal Government takes over the \r\nmanagement of a marketing company but does not hold majority portion of shares in the \r\ncompany carrying voting rights therein, it shall, on behalf of such company, guarantee to the \r\nshareholders of such company a minimum annual rate of return equivalent to one per cent \r\nabove the bank rate. \r\n \r\n(2) The rate of return referred to in sub-section (1) shall be worked out on the paid up \r\ncapital of the marketing company. \r\n \r\n28. Bar of jurisdiction.—(1) No court, shall call in question or permit to be called in \r\nquestion, any provision Of this Act or of any order made or anything done or any action \r\ntaken there under. \r\n \r\n(2) No court shall grant any injunction or make any order or entertain any \r\nproceedings, in relation to anything done or intended to be done under this Act. \r\n \r\n29. Indemnity. No suit, prosecution or other legal proceeding s hall lie against the \r\nFederal Government, the Board of Management, a Managing Director or any other person \r\nfor anything done in good faith under this Act or any rule or order made thereunder. \r\n10  \r\n30. Penalties. Whoever contravenes the provisions of section 17 or section 25 shall \r\nbe punishable with imprisonment for a term which may extend to two years, or with fine, or \r\nwith both. \r\n \r\n31. Provision as to composite marketing.   —(1)  Where  a  marketing  company  is \r\nengaged in a business not directly related to the purchasing, obtaining, selling, distributing \r\nor marketing of petroleum products and an order under section 5 is made in respect of such \r\nmarketing company, the Managing Director shall prepare, as soon as possible, a plan for the \r\nseparation of the business relating to  the purchasing, obtaining, selling, distributing or \r\nmarketing of petroleum products from the other business. The plan shall include provisions \r\nfor s eparation of p hysical assets and apportionment of assets and liabilities, including \r\napportionment of p aid up capital on a p ro rata b asis between the respective business. In \r\npreparing the plan, the Managing Director shall follow the provisions of the Companies Act, \r\n1913 (VII of 1913) to the extent it is not inconsistent with the provisions of this Act. \r\n \r\n(2) The Managing Director shall submit the pl an for approval to the Federal \r\nGovernment, which shall publish the plan in the official Gazette to ascertain the views of the \r\nshareholders of the company within a specified period. \r\n \r\n(3) The  Federal Government shall, after considering the views of the shareholders, \r\neither  retain  the  business  not  directly  related  to  the  purchasing,  obtaining,  selling, \r\ndistributing  or  marketing  of  p etroleum  products  and  the  assets  and  liabilities  of  such \r\nbusiness,  or dispose  of the  business  alongwith  the  assets  and  liabilities  apportioned  as \r\nrelating thereto, in such manner as the Federal Government may deem fit. \r\n \r\n32. Savings.   Nothing contained in this Act shall apply to any marketing company \r\nin which the whole or a substantial proportion of shares is held by foreigners or affect any \r\nagreement between a foreign investor or creditor and any citizen of Pakistan which has been \r\nexpressly approved by the Federal Government. \r\n \r\n33. Power to make rules. —(1) The Federal Government may, by notification in the \r\nofficial Gazette, make rules 1for carrying out the purposes of this Act. \r\n \r\n(2) In particular and without prejudice to the generality of the foregoing power, such \r\nrules may provide for, of' may empower the Board of Management to make orders providing \r\nfor, all or any of the following matters, namely:— \r\n \r\n(a) ensuring the safety of the properties of a managed company; \r\n \r\n(b) ensuring the due performance of their duties by the persons connected with a \r\nmanaged company; \r\n \r\n(c) prohibiting any thing likely to interfere with the proper functioning of a \r\nmanaged company; \r\n \r\n \r\n1  For the Marketing of Petroleum Products (Acquisition and Compensation) Rules, 1974, see S.R.O., 554 (I)/74, dt. 29-3-74, Gaz. of P., \r\nExt, (Islamabad), 1974 Pt. II, pp. 681 684. \r\n11  \r\n(d) the administration, management and disposal by way of transfer or otherwise \r\nof any property b elonging to, or held or managed by or  on behalf of, a \r\nmanaged company; \r\n \r\n(e) prohibiting save with the leave of the Managing Director or any other person \r\nauthorised in this behalf by the  Federal Government or the Board of \r\nManagement, the departure from any area of any person connected with the \r\nadministration, control or functioning of a managed company; \r\n \r\n(f) the taking over or control of any business, trade, industry, firm or company \r\nwhich, in the opinion of Federal Government, is a subsidiary of a marketing \r\ncompany; \r\n \r\n(g) the requisitioning of any p roperty, movable or immovable, belonging to a \r\nmanaged company; \r\n \r\n(h) the requisitioning of any property, movable or immovable, the requisition of \r\nwhich is, in the opinion of the Federal Government, required for the proper \r\nfunctioning of a managed company; \r\n \r\n(i) preventing the entry of any person into any place, yard, factory, mill, shop or \r\noffice used for the purpose of managed company or of any of its subsidiaries; \r\n \r\n(j) the taking of any steps for collecting, controlling and disposing of the assets, \r\nmovable and immovable, of any managed company; and \r\n \r\n(k) in relation to any managed company to  which the provisions of section 31 \r\napply— \r\n \r\n(i) the determination of the question whether any p roperty pertains to the \r\nbusiness of such company di rectly related to the purchasing, obtaining, \r\nselling, distributing or marketing of petroleum products or whether any \r\nassets, rights, debts, liabilities or obligations were acquired or incurred, or \r\nany contract, agreement or other instrument was made, in respect of or for \r\nthe purposes of any su ch business or whether any d ocuments relate to \r\nthose purposes; \r\n \r\n(ii) the allocation of the paid-up capital, or assets representing paid-up capital, as \r\nthe  case  may  be,  between  such  business  of  the  company  and  any other \r\nbusiness; \r\n \r\n(iii) the substituting of any agreement entered into partly for the purposes of such \r\nbusiness and partly for other purposes by a separate agreement relating solely \r\nto such business and for any apportionment of rights, obligations and \r\nindemnities consequent thereon; \r\n \r\n(iv) the severance of leases comprising property of which part only is used for \r\npurposes of such business of the company and for apportionment of rights \r\nand liabilities consequent on such severance; \r\n \r\n(v) the apportionment and the making of financial adjustments with respect to \r\nany debts liabilities or obligations incurred by the company p artly for the \r\npurposes of such business and partly for other purposes; and \r\n12  \r\n(vi) the apportionment of the moneys and other assets belonging to any provident \r\nor sup erannuation funds, or any, other like fund to which the p rovisions of \r\nsection 26 do not  apply, between persons employed in connection with s uch \r\nbusiness and other persons. \r\n \r\n34. Removal of difficulties. If any difficulty arises in giving effect to any provisions \r\nof this Act, the Federal Government may make such order, not inconsistent with the \r\nprovisions of this Act, as may appear to it to be necessary for the purposes of removing the \r\ndifficulty: \r\n \r\nProvided that no such power shall be exercised after the expiry of one year from the \r\ncommencement of this Act. \r\n \r\n35. [Repeal.] Omitted by the Federal Laws (Revision and Declaration) Ordinance, \r\n1981 (XXVII of 1981), s. 3 and Sch., II. \r\n \r\n \r\n \r\n \r\nTHE SCHEDULE \r\n(See section 14) \r\nPrinciples and the manner for payment of compensation in respect of the shares of a \r\nmarketing company acquired by the Federal Government. \r\n \r\n1. Where the whole or a portion of the shares of such marketing company is acquired \r\nby the Federal Government, the value of the compensation for the shares so acquired shall \r\nbe assessed at the break-up value. \r\n \r\n2. The compensation payable in accordance with the principles indicated above shall \r\nbe paid by the Federal Government in cash or in the form of Government Bonds redeemable \r\nat any time at the option of the Federal Government within a period of 15 years carrying a \r\nrate of interest one per cent above the bank rate notified by the State Bank of Pakistan from \r\ntime to time. The Bonds shall be negotiable and eligible as security for advances. \r\n \r\n3. In this Schedule— \r\n \r\n“Break-up Value” shall mean the value of the shares of a company as \r\ndetermined by the auditors of such company on the basis of its latest \r\naudited annual Balance Sheet, in accordance with clause (c) of rule 8 \r\nof the Wealth-Tax Rules.",
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