Administrator appointed to take over, manage Modaraba company

The Securities and Exchange Commission of Pakistan (SECP) has appointed an Administrator to take over and manage a Modaraba company in place of Map Out Management Company Pvt Limited (Map Out). It is learnt on Wednesday that the SECP Specialised Companies Division, Policy Regulations and Development Department (Modaraba Wing) has issued an order in matter of Unicap Modaraba managed by Map Out.
The SECP order said that in this situation, the SECP consider it necessary and in the public interest to exercise the powers conferred under Section 20(1)(a)(iii) of the Modarba Ordinance and hereby removed Map Out from the management of the Modaraba with immediate effect.
In exercise of powers conferred under Section 20(1)(a)(i) ibid., the SECP hereby appointed an Administrator to take over and manage the Modaraba in place of Map Out with immediate effect. From now onwards all the powers and duties of Map Out and those of its Board of Directors shall be exercised and performed by the an Administrator. The appointment order governing the terms and conditions of appointment of the an Administrator shall be issued separately which shall be read as an integral part of this order, it said.
The SECP said that the Chief Executive and directors of Map Out are directed to immediately hand over the management of the Modaraba to the Administrator failing which the Chief Executive and all the Directors of Map Out would be liable besides any other action under the relevant provision of the law.
Approval of the Commission for the aforesaid appointment of Administrator to manage the Modaraba in place of Map Out has been obtained as required under Section 20(2) of the Ordinance, SECP said. The SECP Order shall dispose of the proceedings initiated against Map Out Management Company (Pvt) Limited (the "Map Out") and its directors including Chief Executive Officer (the "respondents") through a Show Cause Notice (the "SCN") dated July 29, 2015 issued under Section 20 of the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980 (the "Ordinance"), SECP order added.
The above mentioned state of affairs raises serious concerns and indicates the inability and inconsiderate attitude of the Modaraba Company, its Chief Executive and Directors to revive the Modaraba through injection of funds and proper management. The Modaraba Company's continuous default to comply with the condition for injection of equity/musharakah in the Modaraba, non-provision of the requisite information/document and other non-compliances of the regulatory framework, transpires its inability to inject funds and to revive the Modaraba in light of the Order and comply with the regulatory framework for Modarabas, Registrar Modarba order added.