The government is likely to remove Morafco Industries Limited Faisalabad from the trading Board of Karachi Stock Exchange (KSE), official sources told Business Recorder. The company's board members in its 104th meeting held on 9 October, 2012 deferred the option of buy back of shares and delisting of the company from the Lahore Stock Exchange (LSE) and Karachi Stock Exchange (KSE) and approved the release of payment of arrears relating to listing fees, etc, to LSE and KSE through PIDC head office.
In the light of a decision of the Board, the PIDC holding corporation has already released the payments to both exchanges. The sources said, Stock exchanges are now insisting / pressing hard for induction of Morafco Industries Limited under Central Depository System (CDS) with Central Depository Company (CDC) which will cost at least Rs 67,500 per year.
The company has to fulfil several other requirements for listed public limited companies in respect of shareholders, which the company does not possess as the unit was closed for sale through Privatisation Commission in 1997 and since then the shareholders of the company have paid no attention to its affairs. The company's auditors M/s Hameed Khan & Co Lahore have suggested delisting of the company and buy back of shares from the general public in order to save the company from incurring huge expenses and several obligations for a listed company again.
Since, the company has already released the payments to M/s Lahore and Karachi Stock exchanges, yet the induction of shares under CDS with CDC is still pending. After detailed discussion, the Board passed following resolution unanimously "that Zahid ur Rehman Director of the Morafco Industries Limited is hereby authorised to contact the Karachi Stock Exchange to resolve the issue of buy back of shares of the company and induction of shares under CDS with CDC amicably with an aim that the Morafco Industries Limited may be removed from the trading Board of KSE and the closed company be exonerated from payments of listing fees etc to KSE."
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