West Pakistan Undesirable Companies Ordinance, 1959

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THE WEST PAKISTAN UNDESIRABLE COMPANIES 
ORDINANCE, 1959 
 
 
  
                                                            CONTENTS  
1. Short Title, and extent 
2. Definitions 
3. Registration of undesirable companies prohibited 
4. Existing undesirable Companies to cease functioning 
5. Deposit of cash and preservation of assets, etc. 
6. Statement of assets, etc., to be submitted to registrar 
7. Winding up undesirable companies 
8. Dissolution of undesirable companies 
9. Power to call for certain information, etc. 
10. Offences to be cognizable 
11.  Cognizance by court with the consent of registrar 
12.  Power to make rules 
 
  
 

 
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THE WEST PAKISTAN UNDESIRABLE COMPANIES 
ORDINANCE, 1959. 
WEST PAKISTAN ORDINANCE No. XXII OF 1959. 
[22nd April, 1959] 
AN  
ORDINANCE 
to prohibit the registration of companies for carrying on business for certain undesirable purposes 
and to provide for the winding up and dissolution of such companies. 
Preamble WHEREAS it is expedient to prohibit the registration of companies for carrying on 
business for certain undesirable purposes and to pro vide for the winding up and dis solution of such 
companies; 
NOW, THEREFORE, in pursuance of the Presidential Proclamation of the seventh day of 
October, 1958, and in exercise of all powers enabling him in that behalf, the Governor of West Pakistan 
is pleased to make and promulgate the following Ordinance:__ 
1. Short Title, and extent . (1) This Ordinance may be cal led the West Pakis tan Undesirable 
Companies Ordinance, 1959. 
1[(2) It extends to the whole of the Province of Wes Pakistan, except the Tribal Areas.] 
2. Definitions. (1) In this Ordinance, unless the context otherwise requires, the following 
expressions shall have the meanings hereby respectively assigned to them, that is to say__ 
(a)  “registrar” means__ 
(i)  in the case of a company, the registrar appointed under section 248 of 
the Companies Act, 1913 (VII of 1913); and 
(ii)  in any other case, an officer appointed as such for purposes of this 
Ordinance; 
(b) “specified purpose” means the promotion or the carrying on of any scheme or 
business except the business authorised and carried on under the provisions of 
the Insurance Act, 1938  (V of 1938) , by whatever name called, whereby, in 
return for a deposit or contribution, whether periodically or otherwise, of a sum 
of money in cash or by means of coupons, certificates, tickets or other 
documents, payment, at future date or dates of money or grant of property, right 
or benefit, directly or indirectly, and whether with or without any other right or 
benefit, determined by chance or lottery or any other like manner, is assured or 
promised; 
 
1Subs. by the West Pakistan Laws (Extension to Karachi) Ordinance, 1964 (W. P. Ord. No. VII of 1964), s. 2 and Sch. 
 
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(c) “undesirable company” means a company , which, with objects and business 
confined to the Province of West Pakistan, is registered under the Companies 
Act, 1913 (VII of 1913), and carries on business for a specified purpose or for 
purposes which, among others, include a specified pur pose and includes a 
company, association or other body of individuals which carries on business for 
a specified p urpose or for purposes which, among others, include a specified 
purpose. 
(2) Any expression used but not defined in this Ordinance and defined in the Companies Act, 
1913 (VII of 1913), shall have the meanings assigned to it in that Act. 
3. Registration of undesirable companies prohibited.  (1) Notwithstanding anything in the 
Companies Act, 1913 (VII of 1913), or in any other law for the time being in force, no association or 
other body of individuals which, with objects and business confined to the Province of West Pakistan, 
carries or intends to carry on business for a spe cified purpose or for purposes which, among others, 
include a specified purpose, shall on and after the commencement of this Ordinance, be registered 
under the Companies Act, 1913 (VII of 1913). 
(2) Registration in contravention of sub-section (1) shall be void. 
(3) Notwithstanding anything contained in any other law for the time being in force, no 
company, association or other body of individuals, with objects and business confined to the Province 
of West Pakistan, shall carry on, or shall be formed to carry on, business for a specified purpose or for 
purposes which, among others, include a specified purpose. 
(4) Any person who forms or associates himself in the formation of, a company, association or 
other body of individuals in contravention of sub-section (3) and every officer or agent of a company, 
association or other body of individuals which carries on business in contravention of the said sub -
section shall be punished with imprisonmen t for a term which may extend to three years or with fine 
or with both. 
4. Existing undesirab le Companies to cease functioning . (1) Every undesirable company 
existing immediately before the commencement of this Ordinance shall, on such commencement, 
cease to function and, notwithstanding anything in the Companies Act, 1913  (VII of 1913) or in any 
other law for the time being in force, shall be wound up and dissolved in the manner provided in this 
Ordinance.  
(2) Any transaction with an undesirable company or with any officer or agent acting for or on 
behalf of such company shall be void. 
(3) Any officer or agent acting for or on behalf of any such company who, on or after the 
commencement of this Ordinance, carries on or attempts to carry on the business of the company shall 
be punished with imprisonment for a term which may extend to three years or with fine or with both. 
5. Deposit of cash and preservation  of assets, etc. (1) Any officer or agent acting for or on 
behalf of an undesirable company who has in his possession or under his control any cash belong ing 
to the company shall, immediately after the commencement of this Ordinance, deposit or cause to be 
deposited such cash with the company’s bankers. 
 
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(2) Until such time as the official liquidator appointed under section 7 takes into his custody or 
under his control all the books, documents and assets of the company, including actionable claims to 
which the company is or appears to be entitled, every officer and agent acting for or on behalf of the 
company shall preserve all such books, do cuments, assets, property, effects and claims and shall be 
jointly and severally liable for any loss or damage. 
(3) Any person who, with intent to evade the provisions of this Ordinance, conceals, destroys, 
mutilates or defaces any books, documents, assets, property, effects or claims or knowingly allows 
such concealment, destruction, mutilation or defacement to be caused, shall, without prejudice to any 
liability to which he may be subject under sub -section (2), be punished with imprisonment for a term 
which may extend to three years or with fine or with both. 
6. Statement  of assets , etc., to be submitted to registrar . (1) Within three days of  the 
commencement of this Ordinance, or within such period as the registrar may allow, the manager of an 
undesirable company shall submit to the registrar a statement showing the assets and liabilities of the 
company. 
(2) Any one who contravenes the provisions of sub -section (1) shall be punished with 
imprisonment for a term which may extend to one year or with fine or with both. 
7. Winding up undesirable companies.  (1) As soon as may be after receipt of the statement 
submitted under sub-section (1) of section 6, the registrar shall make a petition to the court for winding 
up the company, and thereupon the court shall make an order for the winding up of the company and 
shall appoint an official liquidator for such winding up. 
(2) After the official liquidator has been appointed under this section, the provisions of the 
Companies Act, 1913 (VII of 1913), relating to the winding up by court of a registered company shall 
mutatis mutandis apply in relation to the winding up of the compa ny in respect of which the petition 
has been made under sub-section (1). 
  8. Dissolution of undesirable companies.  When the affairs of an undesirable company have 
been completely wound up, the company shall be deemed to have been dissolved under sub-section 
(1) of section 194 of the Companies Act, 1913 (VII of 1913). 
9. Power to call for certain information, etc. (1) Where the registrar has reason to believe 
that a company is an undesirable company or that an undesiredable company is carrying on b usiness 
in contravention of section 4, he or any gazetted officer authorised by him in this behalf, may__ 
(a) direct any person to give such information in his possession with respect to any 
business carried on by that company as he may demand; 
(b) inspect or cause to be inspected any book or other document belonging to or 
under the control of the company or any officer thereof; 
(c) enter and search any premises and seize or  authorise any person to seize any 
book or other document belonging to or under the control of the company or 
any officer thereof. 
 
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(2) If the registrar is satisfied that a company is an undesirable company or that an undesirable 
company is carrying on business in contravention of section 4, he shall by order in writing , direct the 
manager of the company to hand over the management of the company to a person to be appointed by 
the registrar for th e purpose, and the manager shall forthwith hand over the management of the 
company to such person. 
(3) The person to whom management is handed over in pursuance of sub -section (2) shall be 
deemed to be the manager of the company, and the other provisions o f this Ordinance shall apply 
accordingly. 
(4) Whoever fails to comply with any direction given under sub -section (1) or sub-section (2) 
shall be punished with imprisonment for a term which may extend to six months or with fine or with 
both. 
10. Offence to be cognizable.  Notwithstanding anything contained in the Code  of Criminal 
Procedure, 1898 (V of 1898), any offence under this Ordinance shall be cognizable. 
11. Cognizance by court with the consent of registrar. No court shall take cognizance of any 
offence under this Ordinance except with the previous consent in writing of the registrar. 
12. Power to make rules.  The Provincial Government may make rules to carry out the 
purposes of this Ordinance, and such rules may provide that the breach of any of them shall be 
punishable with imprisonment for a term not exceeding three months or with fine not exceeding one 
thousand rupees. 
 
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RGN Date: 26-05-2025