[1]THE
PUNJAB MINERAL DEVELOPMENT CORPORATION ACT, 1975
( XXXIII of
1975)
[3rd April, 1975]
An
Act
to establish a
Corporation for the purpose of promoting mineral development in the Province of
the Punjab.
Preamble.– WHEREAS it is expedient to establish a Corporation for the purpose
of promoting mineral development in the Province of the Punjab: It is hereby
enacted as follows:-
1. Short title,
extent and commencement.– (1) This Act may be called the Punjab Mineral
Development Corporation Act, 1975.
(2)
It extends to the whole of the Province of the Punjab.
(3)
It shall come into force at once.
(4)
It shall apply to all minerals, except mineral oil,
natural gas and mineral resources necessary for the generation of nuclear
energy.
CHAPTER I
PRELIMINARY
2. Definitions.– In this Act, unless
there is anything repugnant in the subject or context– (a) “Board” means the Board of Directors
of the Corporation; (b) “Chairman” means
the Chairman of the Corporation:
(c)
“Corporation” means the Punjab Mineral Development
Corporation established
under this Act;
(d)
“Director” means a Director of the Corporation;
(e)
“Government” means Government of the Punjab;
(f)
“prescribed” means prescribed by rules;
(g)
“regulations” means regulations made under this Act;
(h) “rules” means rules made under this
Act; and (i) “specified” means
specified by regulations.
CHAPTER II
ESTABLISHMENT, MANAGEMENT AND
ORGANIZATION OF THE CORPORATION
3.
Establishment
and incorporation.– (1) As soon as may be after the commencement of this
Act, Government shall establish a Corporation to be called the Punjab Mineral
Development Corporation.
(2)
The Corporation shall be a body corporate having
perpetual succession and a common seal with power, subject to the provisions of
this Act, to acquire and hold property, both movable and immovable and shall
sue and be sued by the said name.
(3)
The head office of the Corporation shall be at Lahore.
4.
Management
and administration.– (1) The general direction and administration of the
Corporation and its affairs shall vest in the Board which may exercise all
powers and do all acts which may be exercised or done by the Corporation.
(2)
The Board in discharging its functions shall act on
commercial and national considerations and shall follow such directions as
Government may give from time to time.
(3)
If the Board fails to obey any directions mentioned in
sub-section (2) or if the Board, the Managing Director or any Director
contravenes the provisions of this Act or of the rules or regulations made
under it or if the Managing Director or any Director is found guilty of
misconduct, Government may remove all or any of the Directors or the Managing
Director, as the case may be, and notwithstanding anything to the contrary
contained in sections 5 and 6 appoint temporarily other persons in their place
to be the Directors or the Managing Director, as the case may be, until new Directors
are appointed in accordance with the provisions of section 5 or a new Managing
Director is appointed in accordance with the provisions of section 6; provided
that only the provisions of clauses (a), (b) and (e) of sub-section (2) of
section 6 shall apply to the person appointed temporarily under this
sub-section to be the Management Director.
(4)
Government may suspend the execution of any such
resolution or order of the Board as in the opinion of Government contravenes
the provisions of this Act, the rules, the regulations framed under this Act,
or, the directions mentioned in sub-section (2), or prohibit the doing of any
act which is to be done or is being done in pursuance of such resolution or
order, or, if the act has been accomplished
order its rectification in such manner as may be directed.
5.
Board.–
(1) The Board shall consist of a Chairman, a Managing Director and the
following Directors:-
(i) The Chairman, Planning and Development Board of Government;
[2][(ii)
Secretary to the Government, Mines and Minerals Department, or his nominee not
below the rank of a Deputy Secretary; and]
(iii) Secretary
to the Government, Finance Department, or his nominee not below the rank of a
Deputy Secretary.
(2)
The Chairman shall be appointed by Government.
(3)
Government may, by notification in the official
Gazette, alter the membership of the Board or increase or decrease the number
of Directors.
6.
Managing
Director.– (1) The managing Director shall be appointed by Government.
(2)
The Managing Director shall–
(a)
be a whole-time officer of the Corporation;
(b)
perform such duties as may be specified or as may be
assigned to him;
(c)
hold office as Managing Director for a term of three
years and shall remain in office as Managing Director thereafter for three
months or until a successor in that office is appointed, whichever is earlier;
(d)
receive such salary and allowances as Government may
determine;
(e)
divest himself of any directorship of, or other
interest held by him in, any other corporation, company or concern; and
(f)
not become a director of, or acquire any share or other
interest in any other corporation, company or concern during his term of
office:
Provided that
nothing in this clause shall prevent the Managing Director from holding shares
in any public company acquired by him before his appointment but he shall
declare such shares to Government at the time of his appointment ;
Provided further
that Government may, in exceptional circumstances, where it considers necessary
to do so in the public interest, exempt by a special order any person who has
been appointed or is about to be appointed as Managing Director from the
application of this clause.
(3)
Nothing in this section shall preclude Government from
extending the term of office of a Managing Director for such period as
Government may determine.
7.
Disqualification
of Managing Director.– No person shall be appointed as Managing Director or
Director or, as the case may be, shall continue to be a Managing Director or
Director who–
(a)
is, or at any time has been convicted of any offence
involving moral turpitude;
(b)
is, or at any time has been disqualified for
appointment in, or dismissed from, government service;
(c)
is, or at any time has been adjudged insolvent;
(d)
is found a lunatic or becomes of unsound mind :
(e)
is not a citizen of Pakistan; or
(f)
is less than twenty-five years of age.
8.
Removal of
Managing Director and Directors.– Government may, by order in writing,
remove the Managing Director or a Director, as the case may be, after giving
him an opportunity of being heard if he–
(a)
refuses or fails to discharge or becomes, in the
opinion of Government incapable of discharging his responsibilities under this
Act;
(b)
has, in the opinion of Government, abused his position
as Managing Director or Director; or
(c)
has knowingly acquired or continued to hold, without
the permission in writing of Government directly or indirectly, or through a
partner any share or interest in any contract or employment with, or on behalf
of the Corporation or in any property, which he knows is likely to benefit or
has benefited him as a result of the operations of the Corporation.
9.
Resignation
by or removal of Managing Director or Directors.– Notwithstanding anything
contained in this Act, the Managing Director or a Director, at any time before
the expiry of his term and upon three month’s notice, resign his office, or
upon similar notice, be removed from office by Government without assigning any
reason:
Provided that
Government may, upon payment of three month’s salary and allowances in lieu of
the notice, remove the Managing Director or a Director immediately without
assigning any reason.
10.
Appointment
of officers.– The Board may appoint such officers, advisers, experts,
consultants and employees, as it considers necessary for the efficient
performance of its functions on such terms and conditions as it may deem fit,
subject to such general or special directions as Government may give from time
to time in this behalf.
11.
Declaration
of fidelity and secrecy.– (1) Every
director, adviser, officer,
expert, consultant and employee of the Corporation shall, before
entering upon his office, make such declaration of fidelity and secrecy as may
be specified.
(2)
Any
director, adviser, officer,
expert, consultant, or other
employee of the Corporation who, in the opinion of the Government, has violated
the declaration of fidelity and secrecy made by him under sub-section (1) shall
be liable, after being given a reasonable opportunity of showing cause against
the action proposed to be taken with respect to him, to be forthwith removed
from his office or post.
12.
Financial,
technical and advisory committees.– The corporation may constitute such
financial, technical and advisory committees as may be deemed necessary for
carrying out the purposes of this Act.
13.
Immunity of
the corporation and its employees.– (1) Every director,
adviser, officer, expert, consultant and employee of the Corporation
shall be indemnified by the Corporation against all losses and expenses
sustained or incurred by him in the discharge of the duties of his office save
such losses and expenses as are sustained and incurred as a result of his own
wilful act or default.
(2)
The Managing Director shall not be personally
responsible for the acts of a director, adviser, officer,
expert, consultant or employee of
the Corporation which he could not have reasonably prevented by the due
exercise of his powers and functions under this Act and the rules and
regulations made thereunder or for any loss or expense resulting to the
Corporation by reason of insufficiency or deficiency in the value or title of any
property or security acquired or taken on behalf of the Corporation, by
wrongful act of any persons under a liability to the Corporation, or anything
done by him in good faith in execution of the duties of his office.
14.
Delegation
of powers.– The Board may, by general or special order, delegate to the
Chairman, Managing Director,
directors, advisers officers,
consultants or employees of the corporation any of its powers, duties or
functions under this Act and the rules and regulations made thereunder subject
to such conditions as it may deem fit to impose.
15.
Meetings of
Board.– (1) The meetings of the Board shall be held at such time and place
as may be specified:
Provided that ninety days shall
not intervene between two meetings of the Board:
Provided further
that until regulations are made in this behalf, such meetings shall be held at
such time and place as may be determined by the Chairman.
(2)
The quorum required for transacting business at a
meeting of the Board shall be three.
(3)
The Chairman, the Managing Director and a Director
shall each have one vote but in the event of equality of votes the Chairman
shall have a casting vote.
(4)
The meetings of the Board of Directors shall be
presided over by the Chairman and in his absence by a Director elected for the
purpose by the Directors present from amongst themselves.
(5)
No act or proceedings of the Board shall be invalid
merely on the ground of existence of any vacancy in the Board.
(6)
The minutes of every meeting of the Board, stating
among other things, the names of the Directors present, shall be drawn up and
recorded in a book to be kept for the purpose and shall be signed by the person
presiding over the meeting and such book shall, at all reasonable times and
without payment of any fee, be open to inspection by the Directors.
16.
Submission
of returns, statements, etc. to Government.– (1) Government may require the
Managing Director to furnish to it–
(a)
any return, statement, estimate, statistics or other
information regarding any matter under the control of the Corporation;
(b)
a report on any such matter; or
(c)
a copy of any document in his charge; and the Managing
Director shall comply with any such requisitions without any undue delay.
(2)
The Managing Director shall prepare and submit a
quarterly report to the Board.
17.
Power of
Board to associate other persons.– (1) The Board may associate with itself,
in such manner, on such terms and for such period as it may deem fit, any
person whose assistance or advice it may desire in carrying out any of the
provisions of this Act.
(2)
A person associated under sub-section (1) for any
purpose shall have the right to take part in the discussion relating to such
purpose in the meetings of the Board but shall not have the right to vote, and
shall not be deemed to be a Director for that or any other purpose.
CHAPTER III
FUNCTIONS OF THE CORPORATION
18. Business which
the Corporation shall transact.– (1) The Corporation shall draw up schemes,
with objects confined to the Province of the Punjab, for the development,
surveying, prospecting, exploring, mining, processing, industrial exploitation
and purchase and sale of minerals including their import and export and for the
improvement of communications, water supply, power and such other ancillary
matters as may be conducive to the attainment of these purposes in the areas
selected by the Corporation for any such development and submit the same to
Government for approval.
(2)
The Corporation shall, as soon as may be, proceed to
give effect to any Scheme approved by Government, and in particular may–
(a)
form and establish companies to manage and run the
projects as are established by the Corporation:
Provided that before sponsoring
any such company the Corporation shall obtain the approval of Government to the
company’s capital structure:
(b)
manage on behalf of Government the shares purchased by
Government in the issued capital of companies established by the Corporation;
(c)
subscribe to the capital of these companies to such
extent as may be necessary;
(d)
act as Managing Agents of the companies established by
the Corporation;
(e)
give short and medium term loans or furnish guarantees
to the scheduled banks for loans to the companies established by the
Corporation in the manner aforesaid; and (f) establish, manage and run the
projects under its direct control.
(3)
The Corporation may, if it considers expedient, sell or
transfer all or any of the shares subscribed by it under sub-section (2):
Provided that
the Corporation shall not, without the previous sanction of Government, sell or
transfer such shares at a rate below the par value of such shares, or below the
prevailing market rate if such rate is higher than the par value of shares.
CHAPTER IV
FINANCE
19.
Corporation
to be deemed a local authority.– The Corporation shall be deemed to be a
local authority under the Local Authorities Loans Act, 1914, for the purposes
of borrowing money under the said Act, and the making and execution of any
scheme under this Act shall be deemed to be work which such authority is
legally authorised to carry out.
20.
Loans.–
The Corporation may negotiate and obtain for the purposes of this Act, loans in
local and foreign currency from the local or international financial
institutions:
Provided that in
the case of loans from international institutions, the Corporation shall act
with the prior approval of Government.
21.
Corporation
fund.– (1) There shall be a fund to be known as Punjab Mineral Development
Corporation Fund, which shall vest in the Board and which shall be utilised by
the Board to meet expenses in connection with the affairs of the Corporation
including salaries and other remuneration of the Chairman, Managing Director,
Directors, and employees of the Corporation.
(2)
The Punjab Mineral Development Corporation Fund shall
consist of–
(a)
investments made by Government;
(b)
grants made by Government;
(c)
loans obtained from Government;
(d)
charges for the management of companies under the
direct control of the Corporation;
(e)
managing agency commission in respect of companies
managed by the Corporation;
(f)
loans obtained from the scheduled banks;
(g)
foreign loans obtained by the Corporation; and (h) all other sums received by the
Corporation.
22.
Custody and
investment of Corporation fund.– (1) All moneys at the credit of the
Corporation shall be kept in such manner as may be prescribed.
(2)
Nothing in sub-section (1) shall be deemed to preclude the
Corporation from investing any such moneys which are not required for immediate
expenditure in any of the securities described in section 20 of the Trust Act,
1889, in fixed deposits with a bank approved by Government or in such other
manner as Government may direct.
23.
Maintenance
of accounts.– The Corporation shall maintain complete and accurate accounts
in such manner as may be prescribed.
24.
Audit of
accounts.– The Corporation shall, with the previous approval of Government,
appoint its auditors who shall be persons holding certificate under section 144
of the Companies Act, 1913:
Provided that if
Government so directs, the accounts of the Corporation shall be audited by the
Comptroller and Auditor-General of Pakistan.
25.
Reports to
be furnished to Government.– (1) The Corporation shall furnish to
Government as soon as possible, after the close of each financial year an
audited statement in the prescribed form in respect of the assets and
liabilities of its projects and in respect of its transactions as they stand at
the close of that year together with a profit and loss account for that year
and a full report on the working of the Corporation during that year and copies
of the said statements accounts and report shall be published in the official
Gazette.
(2)
The Corporation shall submit to Government its
proposals for the ensuing financial year at such time and in such manner as may
be prescribed.
26.
Profit to be
paid to Government.– The profits of the Corporation shall be deemed to be
the income of Government and shall be payable to it in such manner as may be
approved by Government.
CHAPTER V
MISCELLANEOUS
27.
Rules.–
(1) Government may make rules for the purpose of giving effect to the
provisions of this Act.
(2)
In particular and without prejudice to the generality
of the foregoing provisions, such rules may provide for–
(a)
the manner and form of keeping the accounts of the
Corporation;
(b)
recruitment of officers, advisers, consultants, experts
and other employees of the Corporation;
(c)
terms and conditions of service of the officers,
advisers, consultants, experts and other employees of the Corporation;
(d)
functions of the advisers;
(e)
borrowing by the Corporation;
(f)
the date on which and the form in which the annual
budget statement of the Corporation shall be submitted each year;
(g)
procedure for appropriation and reappropriation of
moneys at the credit of the Corporation;
(h)
manner and form in which and the authorities to whom
returns, reports or statements shall be submitted;
(i)
investment of Corporation Funds and surplus moneys;
(j)
sale or transfer of companies and other immovable
property of the Corporation;
(k)
the sale or transfer of shares under sub-section (3) of
section 18; and
(l)
such other matters relating to the administration and
other affairs of the Corporation as the Government may think fit to prescribe
by rules.
28.
Regulations.–
The Corporation may, with the previous sanction of Government, make regulations
for all matters for which provision is necessary or expedient for carrying out
the purposes of this Act and the rules.
29.
Rules and
regulations to be published in the official Gazette.– All rules and
regulations made under this Act shall be published in the official Gazette.
30.
Winding up
and its consequences.– (1) No provision of law relating to winding up of
companies shall apply to the Corporation.
(2)
When, in the opinion of Government, it is expedient
that the Corporation shall cease to exist, Government may, by notification in
the official Gazette, declare that the Corporation shall be dissolved from such
date as may be specified in this behalf in such notification and the
Corporation shall be deemed to be dissolved accordingly.
(3)
As from such date–
(a)
all properties, funds and dues which are vested in or
realisable by the Corporation shall vest in and be realisable by an
Administrator or any other officer appointed by Government in this behalf;
(b)
all liabilities which are enforceable against the
Corporation shall be enforceable only against the Administrator or the officer
appointed by Government in this behalf;
(c)
for the purposes of completing the execution of any
scheme, sanctioned under this Act which has not been fully executed by the
Corporation and of realising properties, funds and dues referred to in clause
(a), the functions of the Corporation and the Chairman under this Act shall be
discharged by the Administrator or the officer appointed by Government in this
behalf;
(d)
the Administrator or the officer appointed by
Government shall keep separate accounts of all moneys respectively received and
expended by him under this Act until all loans raised hereunder have been
repaid and until all liabilities referred to in clause (b) have been duly met;
and
(e)
the Administrator or the officer appointed by
Government in this behalf shall have power to dispose of the properties,
assets, rights, etc. of the Corporation in such manner as Government may direct
from time to time.
(4)
Any properties and assets left over after all the
liabilities of the Corporation have been discharged shall vest in government
and all liabilities left undischarged after all the properties and assets of
the Corporation have been disposed of shall become the liabilities of
Government.
(5)
The Administrator or the officer appointed by
Government in this behalf may delegate any of his power under this section to
any other officer of Government or to any officer of the Corporation to such
extent and on such terms and conditions as may be approved by Government.
31.
Repeal.–
The West Pakistan Mineral Development Corporation Act 1958 (West Pakistan Act
XXVI of 1958) is hereby repealed.
[1]
This Act was passed by the Punjab Assembly on 5th March, 1975; assented to by
the Governor of the Punjab on 3rd April, 1975; and, published in the Punjab
Gazette (Extraordinary), dated 3rd April, 1975, pages 283-294.
[2]
Substituted by the Punjab Minerals Development Corporation (Amendment) Act 2010
(I of 2010).
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