Section 172 — Disqualification orders

(1) In any of the circumstances stated
hereunder, the Commission may pass a disqualification order against a person to
hold the office of a director of a company for a period up to five years beginning
from the date of order—

(a) conviction of an offence in connection with the promotion,
formation, management or liquidation of a company, or with the
receivership or management of a company's property;

(b) persistent default in relation to provisions of this Act requiring any
return, account or other document to be filed with, delivered or sent,
or notice of any matter to be given, to the Commission or the
registrar;

(c) a person has been a director of a company which became insolvent
at any time (while he was a director or subsequently):

Provided that order against any such person shall not be
made after the end of the period of two years beginning with the day
on which the company of which that person is or has been a director
became insolvent;

(d) the business of the company in which he is or has been a director,
has conducted to defraud its creditors, members or any other persons
or for a fraudulent or unlawful purpose, or in a manner oppressive
of any of its members or that the company was formed for any
fraudulent or unlawful purpose; or

(e) the person concerned in the formation of the company or the
management of its affairs have in connection therewith been guilty

of fraud, misfeasance, breach of trust or other misconduct towards
the company or towards any of its member; or

(f) the affairs of the company of which he is a director have been
conducted in a manner which has deprived the shareholders thereof
of a reasonable return; or

(g) the person has been convicted of allotment of shares of a company
for inadequate consideration; or

(h) the person is involved in illegal deposit taking; or

(i) the person has been convicted of financial irregularities or
malpractices in a company or

(j) the company of which he is a director has acted against the interests
of the sovereignty and integrity of Pakistan, the security of the State,
friendly relations with foreign States; or

(k) the company of which he is a director refuses to act according to the
requirements of the memorandum or articles or the provisions of this
Act or fail to carry out the directions of the Commission given in the
exercise of powers under this Act; or

(l) the person is convicted of insider trading or market manipulation
practices; or

(m) the person has entered into a plea bargain arrangement with the
National Accountability Bureau or any other regulatory body;

(n) the person has been declared a defaulter by the securities exchange;

(o) that it is expedient in the public interest so to do.

(2) Where a disqualification order is made against a person who is
already subject to such an order, the periods specified in those orders shall run
concurrently.
(3) An order under this section may be made by the Commission on its
own motion or upon a complaint made in this regard.
(4) Before making an order the Commission shall afford the person
concerned an opportunity of representation and of being heard.
(5) Any order made by the Commission under this section shall be
without prejudice to the powers of the Commission to take such further action as it
deems fit with regard to the person concerned.