Latif Saeed, a shareholder in Falcon Cars Limited (FCL), recently obtained a certified copy of the...

 

Transcribed Image Text:

Latif Saeed, a shareholder in Falcon Cars Limited (FCL), recently obtained a certified copy of the company's investment register. This document revealed that FCL has invested in shares of various companies. However, he observed that the shares of some companies are held in the names of other individuals. The details of his observations are as follows: Investee company Albatross Motor Bikes Limited (AML)- an unlisted company Holding 100% Raven Cars Limited (RCL) - a listed company 15% Coot Trackers Limited (CTL) - an unlisted company with five members 5% Shares held in the name of Muneer Noor, an FCL employee nominated as a member of AML, holds one share Salman Tanveer, an FCL director nominated as another member of AML, holds one share Owais Pervaiz, an FCL director nominated as a director of RCL, holds 10% shares Qaim Raheel, an FCL director nominated as a member of CTL, holds one share Latif Saeed, curious about the rationale behind holding FCL's investments in the names of other individuals, has approached you for professional guidance. Under the provisions of the Companies Act, 2017, briefly explain whether FCL is justified in holding its investments in the names of other individuals and also state the potential consequences of failing to comply with the related provisions of the law. Latif Saeed, a shareholder in Falcon Cars Limited (FCL), recently obtained a certified copy of the company's investment register. This document revealed that FCL has invested in shares of various companies. However, he observed that the shares of some companies are held in the names of other individuals. The details of his observations are as follows: Investee company Albatross Motor Bikes Limited (AML)- an unlisted company Holding 100% Raven Cars Limited (RCL) - a listed company 15% Coot Trackers Limited (CTL) - an unlisted company with five members 5% Shares held in the name of Muneer Noor, an FCL employee nominated as a member of AML, holds one share Salman Tanveer, an FCL director nominated as another member of AML, holds one share Owais Pervaiz, an FCL director nominated as a director of RCL, holds 10% shares Qaim Raheel, an FCL director nominated as a member of CTL, holds one share Latif Saeed, curious about the rationale behind holding FCL's investments in the names of other individuals, has approached you for professional guidance. Under the provisions of the Companies Act, 2017, briefly explain whether FCL is justified in holding its investments in the names of other individuals and also state the potential consequences of failing to comply with the related provisions of the law.

Answer rating: 100% (QA)

Under the Companies Act 2017 Falcon Cars Limited FCL may not be justified in hold... View the full answer