Appointment of SSGC Board Chairperson Challenged in Court
By Newztodays Team
The appointment of the SSGC board chairperson has been challenged in the Sindh High Court.
The petitioner argues in the petition that, according to the State-Owned Enterprises (SOE) Act, a director on any board becomes ineligible to continue as a director if they hold a government position in any form.
Furthermore, the petitioner asserts that Shamshad Akhter, Chairperson of the SSGC board, has completed two terms on the SSGC Board, and according to SOE Act 12(4), she cannot be appointed for a third term until a gap of three years has lapsed after the expiry of two terms.
The petitioner also highlights a conflict of interest, stating that as the Finance Minister, she heads the Central Monitoring Unit where all SOEs report their matters. Petroleum Division Seeks Third-Time Extension in Tenure of SSGC Board
Now, as the head of the SSGC board, she is effectively reporting to herself, creating a conflict of interest.
The Chairperson was appointed as Director-Cum-Chairperson in the Public Limited Company, SSGCL, in March 2019. Despite her three-year term expiring on October 28, 2022, she continues to hold the position of Chairperson of SSGCL, receiving remuneration and other privileges, which the petitioner argues is a violation of the SOE Act.
The petitioner emphasizes that, as the Chairperson of SSGCL, Shamshad Akhter received four-time extensions for holding elections of the Board of Directors, which the petitioner claims is illegal and an abuse of authority, as the Securities and Exchange Commission of Pakistan (SECP) can only grant a one-time extension for 90 days.
The petitioner further contends that Shamshad Akhter holds multiple positions, including Caretaker Minister (Finance), Chairperson of the Pakistan Stock Exchange Limited, Chairperson of the Board of Sui Southern Gas Company Limited, Chairperson of the Pakistan Institute of Corporate Governance, and Advisor on Pakistan Environment Trust Fund and SSGC-LPG.
The petitioner argues that she should have resigned from these positions upon becoming the Finance Minister, but her failure to do so is seen as a violation of legal entitlements.
Lastly, the petitioner claims that SSGC has incurred a loss of 21 billion rupees in the last 18 months, and as a shareholder of the company, they are adversely affected by the illegal act of not holding elections for the Board of Directors, hindering effective measures for the betterment of SSGCL.
The petitioner concludes by stating that, according to the Companies Act, 2017, and the State-Owned Enterprises (Governance and Operations) Act, 2023, the current Chairperson is disqualified from holding the office of Chairperson based on these grounds.
