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  "title": "PUNJAB MINERAL DEVELOPMENT CORPORATION ACT, 1975",
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  "text": "THE PUNJAB MINERAL DEVELOPMENT CORPORATION \r\nACT, 1975 \r\n(XXXIII of 1975) \r\nCONTENTS \r\n1. Short title, extent and commencement \r\nCHAPTER I \r\nPRELIMINARY \r\n2. Definitions \r\nCHAPTER II \r\nESTABLISHMENT, MANAGEMENT AND ORGANISATION OF THE \r\nCORPORATION \r\n3. Establishment and incorporation \r\n4. Management and administration \r\n5. Board \r\n6. Managing Director \r\n7. Disqualification of Managing Director \r\n8. Removal of Managing Director and Directors \r\n9. Resignation by or removal of Managing Director or Directors \r\n10. Appointment of Officers \r\n11. Declaration of fidelity and secrecy \r\n12. Financial and technical advisory committees \r\n13. Immunity of the corporation and its employees \r\n14. Delegation of powers \r\n15. Meeting of Board \r\n16. Submission of returns, statements etc. to Government \r\n17. Power of Board to associate other persons \r\nCHAPTER III \r\nFUNCTIONS OF THE CORPORATION \r\n18. Business which the Corporation shall transact \r\n \r\nCHAPTER IV \r\nFINANCE \r\n19. Corporation to be deemed a local authority \r\n20. Loans \r\n21. Corporation Fund \r\n22. Custody and investment of Corporation Fund \r\n23. Maintenance of accounts \r\n24. Audit of Accounts \r\n25. Reports to be furnished to Government \r\n26. Profits to be paid to Government \r\nCHAPTER V \r\nMISCELLANEOUS \r\n27. Rules \r\n28. Regulations \r\n29. Rules and Regulations to be published in the official Gazette \r\n30. Winding up and its consequences \r\n31. Repeal \r\n \r\n \r\nTEXT \r\n1\r\nTHE PUNJAB MINERAL DEVELOPMENT CORPORATION ACT, 1975 \r\n(XXXIII of 1975) \r\n[3rd April, 1975] \r\nAn \r\nAct \r\nto establish a Corporation for the purpose of promoting mineral development in the \r\nProvince of the Punjab. \r\nPreamble.– WHEREAS it is expedient to establish a Corporation for the purpose of \r\npromoting mineral development in the Province of the Punjab; \r\n It is hereby enacted as follows:– \r\n1. Short title, extent and commencement .– (1) This Act may be called the \r\nPunjab Mineral Development Corporation Act, 1975. \r\n (2) It extends to the whole of the Province of the Punjab. \r\n (3) It shall come into force at once. \r\n (4) It shall apply to all minerals, except mineral oil, natural gas and mineral \r\nresources necessary for the generation of nuclear energy. \r\nCHAPTER I \r\nPRELIMINARY \r\n2. Definitions.– In this Act, unless there is anything repugnant in the subject or \r\ncontext– \r\n(a) “Board” means the Board of Directors of the Corporation; \r\n(b) “Chairman” means the Chairman of the Corporation: \r\n(c) “Corporation” means the Punjab Mineral Development Corporation \r\nestablished under this Act; \r\n(d) “Director” means a Director of the Corporation; \r\n(e) “Government” means Government of the Punjab; \r\n(f) “prescribed” means prescribed by rules; \r\n(g) “regulations” means regulations made under this Act; \r\n(h) “rules” means rules made under this Act; and \r\n(i) “Specified” means specified by regulations. \r\n                                                 \r\n1This Act was passed by the Punjab Assembly on 5th March, 1975; assented to by the Governor of the Punjab on 3rd April, 1975; \r\nand, published in the Punjab Gazette (Extraordinary), dated 3rd April, 1975, pages 283-294. \r\n \r\nCHAPTER II \r\nESTABLISHMENT, MANAGEMENT AND ORGANISATION OF THE \r\nCORPORATION \r\n3. Establishment and incorporation .– (1) As soon as may be after the \r\ncommencement of this Act, Government shall establish a Corporation to be called \r\nthe Punjab Mineral Development Corporation. \r\n (2) The Corporation shall be a body corporate having perpetual \r\nsuccession and a common seal with power, subject to the provisions of this Act, to \r\nacquire and hold property, both movable and immovabl e and shall sue and be sued \r\nby the said name. \r\n (3) The Head Office of the Corporation shall be at Lahore. \r\n4. Management and administration .– (1) The general direction and \r\nadministration of the Corporation and its affairs shall vest in the Board which may \r\nexercise all powers and do all acts which may be exercised or done by the \r\nCorporation. \r\n (2) The Board in discharging its functions shall act on commercial and \r\nnational considerations and shall follow such directions as Government may give \r\nfrom time to time. \r\n (3) If the Board fails to obey any directions mentioned in sub -section (2) or \r\nif the Board, the Managing Director or any Director contravenes the provisions of this \r\nAct or of the rules or regulations made under it or if the Managing Director or any \r\nDirector is found guilty of misconduct, Government may remove all or any of the \r\nDirectors or the Managing Director, as the case may be, and notwithstanding \r\nanything to the contrary contained in sections 5 and 6 appoint temporarily other \r\npersons in their place t o be the Directors or the Managing Director, as the case may \r\nbe, until new Directors are appointed in accordance with the provisions of section 5 \r\nor a new Managing Director is appointed in accordance with the provisions of section \r\n6; provided that only the  provisions of clauses (a), (b) and (e) of sub -section (2) of \r\nsection 6 shall apply to the person appointed temporarily under this sub-section to be \r\nthe Managing Director. \r\n (4) Government may suspend the execution of any such resolution or \r\norder of the Boa rd as in the opinion of Government contravenes the provisions of \r\nthis Act, the rules, the regulations framed under this Act, or, the directions mentioned \r\nin sub -section (2), or prohibit the doing of any act which is to be done or is being \r\ndone in pursuance  of such resolution or order, or, if the act has been accomplished   \r\norder its rectification in such manner as may be directed. \r\n5. Board.– (1) The Board shall consist of a Chairman, a Managing Direct or and \r\nthe following Directors:– \r\n (i) The Chairman, Planning and Development Board of Government; \r\n \r\n2\r\n[(ii) Secretary to the Government, Mines and Minerals Department, or his \r\nnominee not below the rank of a Deputy Secretary; and] \r\n(iii) Secretary to the Government, Finance Department, or his nominee not \r\nbelow the rank of a Deputy Secretary. \r\n (2) The Chairman shall be appointed by Government. \r\n (3) Government may, by notification in the official Gazette, alter the \r\nmembership of the Board or increase or decrease the number of Directors. \r\n6. Managing Director .– (1) The M anaging Director shall be appointed by \r\nGovernment. \r\n (2) The Managing Director shall– \r\n(a) be a whole-time officer of the Corporation; \r\n(b) perform such duties as may be specified or as may be assigned to him; \r\n(c) hold office as Managing Director for a term of three years and shall \r\nremain in office as Managing Director thereafter for three months or \r\nuntil a successor in that office is appointed, whichever is earlier; \r\n(d) receive such salary and allowances as Government may determine; \r\n(e) divest himself of any directorship of, or ot her interest held by him in, \r\nany other corporation, company or concern; and \r\n(f) not become a director of, or acquire any share or other interest in any \r\nother Corporation, company or concern during his term of office: \r\nProvided that nothing in this clause shall prevent the Managing Director from \r\nholding shares in any public company acquired by him before his appointment but he \r\nshall declare such shares to Government at the time of his appointment: \r\nProvided further that Government may, in exceptional circumstances , where it \r\nconsiders necessary to do so in the public interest, exempt by a special order any \r\nperson who has been appointed or is about to be appointed as Managing Director \r\nfrom the application of this clause. \r\n (3) Nothing in this section shall preclude Go vernment from extending the \r\nterm of office of a Managing Director for such period as Government may determine. \r\n7. Disqualification of Managing Director .– No person shall be appointed as \r\nManaging Director or Director or, as the case may be, shall continue t o be a \r\nManaging Director or Director who– \r\n(a) is, or at any time has been convicted of any offence involving moral \r\nturpitude; \r\n(b) is, or at any time has been disqualified for appo intment in, or dismissed \r\nfrom, Government service; \r\n(c) is, or at any time has been adjudged insolvent; \r\n(d) is found a lunatic or becomes of unsound mind; \r\n                                                 \r\n2Substituted by the Punjab Minerals Development Corporation (Amendment) Act 2010 (I of 2010); and published in the Punjab \r\nGazette (Extraordinary), dated 15.2.2010, pages 2093-2094, s.2. \r\n \r\n(e) is not a citizen of Pakistan; or \r\n(f) is less than twenty five years of age. \r\n8. Removal of Managing Director and Directors .– Government may, by order \r\nin writing, remove the Managing Director or a Dire ctor, as the case may be, after \r\ngiving him an opportunity of being heard if he– \r\n(a) refuses or fails to discharge or becomes, in the opinion of Government , \r\nincapable of discharging his responsibilities under this Act; \r\n(b) has, in the opinion of Government, abused his position as Managing \r\nDirector or Director; or \r\n(c) has knowingly acquired or continued to hold, without the permission in \r\nwriting of Government directly or indirectly, or through a partner any \r\nshare or interest in any contract or employment with, or on behalf of the \r\nCorporation or in any property, which he knows is likely to benefit or \r\nhas benefited him as a result of the operations of the Corporation. \r\n9. Resignation by or removal of Managing Director or Directors .– \r\nNotwithstanding anything contained in this  Act, the Managing Director or a Director, \r\nat any time before the expiry of his term and upon three month’s notice, resign his \r\noffice, or upon similar notice, be removed from office by Government without \r\nassigning any reason: \r\n Provided that Government may,  upon payment of three month’s salary and \r\nallowances in lieu of the notice, remove the Managing Director or a Director \r\nimmediately without assigning any reason. \r\n10. Appointment of Officers.– The Board may appoint such officers, advisers, \r\nexperts, consultan ts and employees, as it considers necessary for the efficient \r\nperformance of its functions on such terms and conditions as it may deem fit, subject \r\nto such general or special directions as Government may give from time to time in \r\nthis behalf. \r\n11. Declaration of fidelity and secrecy .– (1) Every  Director,  Adviser,  Officer,  \r\nExpert, Consultant and employee of the Corporation shall, before entering upon his \r\noffice, make such declaration of fidelity and secrecy as may be specified. \r\n (2) Any Director, Adviser, Officer, Expert, Consultant, or other employee of \r\nthe Corporation who, in the opinion of the Government, has violated the declaration \r\nof fidelity and secrecy made by him under sub -section (1) shall be liable, after being \r\ngiven a reasonable opportunity of showing cause against the action proposed to be \r\ntaken with respect to him, to be forthwith removed from his office or post. \r\n12. Financial and technical advisory committees .– The C orporation may \r\nconstitute such financial , technical and advisory committees a s may be deemed \r\nnecessary for carrying out the purposes of this Act. \r\n13. Immunity of the corporation and its employees .– (1) Every  Director,  \r\nAdviser,  Officer,  Expert,  Consultant  and employee of the Corporation shall be \r\nindemnified by the Corporation a gainst all losses and expenses sustained or \r\n \r\nincurred by him in the discharge of the duties of his office save such losses and \r\nexpenses as are sustained and incurred as a result of his own wilful act or default. \r\n (2) The Managing Director shall not be perso nally responsible for the acts \r\nof a Director,  Adviser,  Officer,  Expert,  Consultant or employee of the Corporation \r\nwhich he could not have reasonably prevented by the due exercise of his powers \r\nand functions under this Act and the rules and regulations made thereunder or for \r\nany loss or expense resulting to the Corporation by reason of insufficiency or \r\ndeficiency in the value or title of any property or security acquired or taken on behalf \r\nof the Corporation, by wrongful act of any persons under a liabil ity to the \r\nCorporation, or anything done by him in good faith in execution of the duties of his \r\noffice. \r\n14. Delegation of powers .– The Board may, by general or special order, \r\ndelegate to the Chairman, Managing Director ,  Directors,  Advisers  Officers,  \r\nConsultants or employees of the Corporation any of its powers, duties or functions \r\nunder this Act and the rules and regulations made thereunder subject to such \r\nconditions as it may deem fit to impose. \r\n15. Meeting of Board.– (1) The meetings of the Board shal l be held at such time \r\nand place as may be specified: \r\n Provided that ninety days shall not intervene between two meetings of the \r\nBoard: \r\n Provided further that until regulations are made in this behalf, such meetings \r\nshall be held at such time and place as may be determined by the Chairman. \r\n (2) The quorum required for transacting business at a meeting of the \r\nBoard shall be three. \r\n (3) The Chairman, the Managing Director and a Director shall each have \r\none vote but in the event of equality of votes the Chairman shall have a casting vote. \r\n (4) The meetings of the Board of Directors shall be presided over by the \r\nChairman and in his absence by a Director elected for the purpose by the Directors \r\npresent from amongst themselves. \r\n (5) No act or proceedings of the Bo ard shall be invalid merely on the \r\nground of existence of any vacancy in the Board. \r\n (6) The minutes of every meeting of the Board, stating among other things, \r\nthe names of the Directors present, shall be drawn up and recorded in a book to be \r\nkept for the purpose and shall be signed by the person presiding over the meeting \r\nand such book shall, at all reasonable times and without payment of any fee, be \r\nopen to inspection by the Directors. \r\n16. Submission of returns, statements  etc. to Government .– (1) Government \r\nmay require the Managing Director to furnish to it– \r\n(a) any return, statement, estimate, statistics or other information \r\nregarding any matter under the control of the Corporation; \r\n(b) a report on any such matter; or \r\n(c) a copy of any document in his charge  and the Managing Director shall \r\ncomply with any such requisitions without any undue delay. \r\n \r\n (2) The Managing Director shall prepare and submit a quarterly report to \r\nthe Board. \r\n17. Power of Board to associate other persons .– (1) The Board may associate \r\nwith itself, in such manner on such terms and for such period as it may deem fit, any \r\nperson whose assistance or advice it may desire in carrying out any of the provisions \r\nof this Act. \r\n (2) A person associated under sub -section (1) for any purpose shall have \r\nthe right to take part in the discussion relating to such purpose in the meetings of the \r\nBoard but shall not have the right to vote, and shall not be deemed to be a Director \r\nfor that or any other purpose. \r\nCHAPTER III \r\nFUNCTIONS OF THE CORPORATION \r\n18. Business which the Corporation shall transact.– (1) The Corporation shall \r\ndraw up schemes, with objects confined to the Province of the Punjab, for the \r\ndevelopment, surveying, prospecting, exploring, mining, processing, industrial \r\nexploitation and purchase and sale of m inerals including their import and export and \r\nfor the improvement of communications, water supply, power and such other \r\nancillary matters as may be conducive to the attainment of these purposes in the \r\nareas selected by the Corporation for any such development and submit the same to \r\nGovernment for approval. \r\n (2) The Corporation shall, as soon as may be, proceed to give effect to \r\nany Scheme approved by Government, and in particular may– \r\n(a) form and establish companies to manage and run the projects as are \r\nestablished by the Corporation: \r\nProvided that before sponsoring any such company the Corporation \r\nshall obtain the approval of Government to the Company’s capital \r\nstructure; \r\n(b) manage on behalf of Government the shares purchased by \r\nGovernment in the issued capital o f companies established by the \r\nCorporation; \r\n(c) subscribe to the capital of these companies to such extent as may be \r\nnecessary; \r\n(d) act as Managing Agents of the Companies established by the \r\nCorporation; \r\n(e) give short and medium term loans or furnish guarantees to th e \r\nscheduled banks for loans to the companies established by the \r\nCorporation in the manner aforesaid; and \r\n(f) establish, manage and run the projects under its direct control. \r\n (3) The Corporation may, if it considers expedient, sell or transfer all or \r\nany of the shares subscribed by it under sub-section (2): \r\n Provided that the Corporation shall not, without the previous sanction of \r\nGovernment, sell or transfer such shares at a rate below the par value of such \r\n \r\nshares, or below the prevailing market rate if such rate is higher than the par value of \r\nshares. \r\nCHAPTER IV \r\nFINANCE \r\n19. Corporation to be deemed a local authority .– The Corporation shall be \r\ndeemed to be a local authority under the Local Authorities Loans Act, 1914, for the \r\npurposes of borrowing money under t he said Act, and the making and execution of \r\nany scheme under this Act shall be deemed to be a work which such authority is \r\nlegally authorised to carry out. \r\n20. Loans.– The Corporation may negotiate and obtain for the purposes of this \r\nAct, loans in local a nd foreign currency from the local or international financial \r\ninstitutions: \r\n Provided that in the case of loans from international institutions, the \r\nCorporation shall act with the prior approval of Government. \r\n21. Corporation Fund.– (1) There shall be a fund to be known as Punjab Mineral \r\nDevelopment Corporation Fund, which shall vest in the Board and which shall be \r\nutilised by the Board to meet expenses in connection with the affairs of the \r\nCorporation including salaries and other remuneration of the Chairm an, Managing \r\nDirector, Directors, and employees of the Corporation. \r\n (2) The Punjab Mineral Development Corporation Fund shall consist of– \r\n(a) investment made by Government; \r\n(b) grants made by Government; \r\n(c) loans obtained from Government; \r\n(d) charges for the management of companies under the direct control of \r\nthe Corporation; \r\n(e) managing agency commission in respect of companies managed by \r\nthe Corporation; \r\n(f) loans obtained from the scheduled banks; \r\n(g) foreign loans obtained by the Corporation; and \r\n(h) all other sums received by the Corporation. \r\n22. Custody and investment of Corporation Fund.– (1) All moneys at the credit \r\nof the Corporation shall be kept in such manner as may be prescribed. \r\n (2) Nothing in sub-section (1) shall be deemed to preclude the Corporation \r\nfrom investing any such moneys which are not required for immediate expenditure in \r\nany of the securities described in section 20 of the Trust Act, 1889, in fixed deposits \r\nwith a bank approved by Government or in such other manner as Government may \r\ndirect. \r\n23. Maintenance of accounts.– The Corporation shall maintain complete and \r\naccurate accounts in such manner as may be prescribed. \r\n \r\n24. Audit of Accounts.– The Corporation shall, with the previous approval of \r\nGovernment, appoint its auditors who shall be persons holding certifi cate under \r\nsection 144 of the Companies Act, 1913: \r\n Provided that if Government so directs, the accounts of the Corporation shall \r\nbe audited by the Comptroller and Auditor General of Pakistan. \r\n25. Reports to be furnished to Government .– (1) The Corporation shall furnish \r\nto Government as soon as possible, after the close of each financial year an audited \r\nstatement in the prescribed form in respect of the assets and liabilities of its projects \r\nand in respect of its transactions as they stand at the close of t hat year together with \r\na profit and loss account for that year and a full report on the working of the \r\nCorporation during that year and copies of the said statements accounts and report \r\nshall be published in the official Gazette. \r\n (2) The Corporation shall  submit to Government its proposals for the \r\nensuing financial year at such time and in such manner as may be prescribed. \r\n26. Profits to be paid to Government .– The profits of the Corporation shall be \r\ndeemed to be the income of Government and shall be payab le to it in such manner \r\nas may be approved by Government. \r\nCHAPTER V \r\nMISCELLANEOUS \r\n27. Rules.– (1) Government may make rules for the purpose of giving effect to \r\nthe provisions of this Act. \r\n (2) In particular and without prejudice to the generality of the fo regoing \r\nprovisions, such rules may provide for– \r\n(a) the manner and form of keeping the accounts of the Corporation; \r\n(b) recruitment of officers, advisers, consultants, experts and other \r\nemployees of the Corporation; \r\n(c) terms and conditions of service of the Officers, advisers, consultants, \r\nexperts and other employees of the Corporation; \r\n(d) functions of the Advisers; \r\n(e) borrowing by the Corporation; \r\n(f) the date on which and the form in which the annual budget statement \r\nof the Corporation shall be submitted each year; \r\n(g) procedure for appropriation and reappropriation of moneys at the credit \r\nof the Corporation; \r\n(h) manner and form in which and the authorities to whom returns, reports \r\nor statements shall be submitted; \r\n(i) investment of Corporation Funds and surplus moneys; \r\n(j) sale or transfer o f companies and other immovable property of the \r\nCorporation; \r\n(k) the sale or transfer of shares under sub-section (3) of section 18; and \r\n \r\n(l) such other matters relating to the administration and other affairs of the \r\nCorporation as the Government may think fit to prescribe by rules. \r\n28. Regulations.– The Corporation may, with the previous sanction of \r\nGovernment, make regulations for all matters for which provision is necessary or \r\nexpedient for carrying out the purposes of this Act and the rules. \r\n29. Rules and Regulations to be published in the official Gazette .– All rules \r\nand regulations made under this Act shall be published in the official Gazette. \r\n30. Winding up and its consequences .– (1) No provision of law relating to \r\nwinding up of companies shall apply to the Corporation. \r\n (2) When, in the opinion of Government, it is expedient that the \r\nCorporation shall cease to exist, Government may, by notification in the official \r\nGazette, declare that the Corporation shall be dissolved from such date as may be \r\nspecified in this behalf in such notification and the Corporation shall be deemed to be \r\ndissolved accordingly. \r\n (3) As from such date– \r\n(a) all properties, funds and dues which are vested in or realisable by the \r\nCorporation shall vest in and be realisable by an Administrator  or any \r\nother officer appointed by Government in this behalf; \r\n(b) all liabilities which are enforceable against the Corporation shall be \r\nenforceable only against the Administrator or the Officer appointed by \r\nGovernment in this behalf; \r\n(c) for the purposes of compl eting the execution of any scheme, \r\nsanctioned under this Act which has not been fully executed by the \r\nCorporation and of realising properties, funds and dues referred to in \r\nclause (a), the functions of the Corporation and the Chairman under \r\nthis Act shall be discharged by the Administrator or the officer \r\nappointed by Government in this behalf; \r\n(d) the Administrator or the officer appointed by Government shall keep \r\nseparate accounts of all moneys respectively received and expended \r\nby him under this Act until all  loans raised hereunder have been repaid \r\nand until all liabilities referred to in clause (b) have been duly met; and \r\n(e) the Administrator or the officer appointed by Government in this behalf \r\nshall have power to dispose of the properties, assets, rights, etc.  of the \r\nCorporation in such manner as Government may direct from time to \r\ntime. \r\n (4) Any properties and assets left over after all the liabilities of the \r\nCorporation have been discharged shall vest in government and all liabilities left \r\nundischarged after a ll the properties and assets of the Corporation have been \r\ndisposed of, shall become the liabilities of Government. \r\n (5) The Administrator or the O fficer appointed by Government in this \r\nbehalf may delegate any of his power under this section to any other of ficer of \r\nGovernment or to any officer of the Corporation to such extent and on such terms \r\nand conditions as may be approved by Government. \r\n \r\n31. Repeal.– The West Pakistan Mineral Development Corporation Act , 1958 \r\n(West Pakistan Act XXVI of 1958) is hereby repealed.",
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