Updated: Monday April 25, 2016/AlEthnien
Rajab 18, 1437/Somavara
Vaisakha 05, 1938, at 01:14:00 AM
The Development of Industries (Federal
Control) Act, 1972
1ACT No. XVI OF
1972
[24th September, 1972]
An Act to
provide for certain matters relating to the development of industries under
Federal control.
WHEREAS it is expedient to
provide for certain matters relating to the development of industries under
Federal control;
It is hereby enacted as
follows:---
1.
Short title, extent and commencement.-(1) This Act may be called the Development of Industries (Federal
Control) Act, 1972.
(2) It extends to the whole
of
(3) It shall come into
force at once.
2.
Definitions. In this
act, unless there is anything repugnant in the subject or context,---
(a) ”Board” means the Board of Industrial Management
constituted under section 5;
(b) ”Chairman” means the Chairman of the Board;
(c) ”establishment” means an establishment within the meaning of
the Order in respect of which a ManagÂing Director has been or is appointed
under Article 4 thereof;
(d) ”Fund” means the Board of Industrial Management Fund
constituted under section 8;
(e) ”Managing Director” means a Managing Director appointed
under the Order;
(f) ”member” means a member of the Board; and
(g) ”Order” means the Economic Reforms Order, 1972 (P.O. No. 1
of 1972).
3.
Declaration. It is
hereby declared that development under Federal control of the industries
specified in the Schedule is expedient in the public interest.
4.
Act to override other laws. The
provisions of this Act shall be in addition to those of the Order and shall
have effect notwithstanding anything contained in the Companies Act, 1913 (VII
of 1913), or any other law for the time being in force or in any agreement,
contract or memorandum or articles of association of a company.
1For Statement of Objects and Reasons, see Gaz.,
of P., 1972, Ext.,
5.
Constitution of Board.—(1)
The Federal Government shall constitute1 a Board of
Industrial Management which shall consist of a Chairman and such number of
members, not exceeding nine, as the Federal Government may appoint.
(2) The Board shall be a
body corporate by the name of the Board of Industrial Management having
perpetual succession and a common seal, with power to acquire and hold
property, and shall by the said name sue and be sued.
(3) The members and the
Chairman shall hold office during the pleasure of the Federal Government on
such terms and conditions as it may determine.
6.
Functions of the Board.—(1)
The functions of the Board shall be to ensure that the establishments are
managed efficiently and in accordance with sound business principles and, in
the performance of that function, the Board may, from time to time,---
(a) exercise such of the powers of a Managing Director under
the Order, and issue such directions to him, as it may consider necessary;
(b) require a Managing Director to furnish it with such
information relating to the affairs of the establishment in respect of which he
is the Managing Director as the Board may require;2
(c) remove from office an auditor of an establishment and
appoint another person to hold that office, or appoint an auditor in addition
to the auditor of an establishment, for such period and on such remuneration
payable by the establishment as the Board may determine 3[; and]
4[(d) remove from office any of the trustees of a provident
Fund Trust or Gratuity Trust constituted in an establishment and appoint any
other person to hold that office for such period and on such terms and conditions
as the Board may determine.]
(2) The exercise by the
Board under sub-section (1) of the powers of a Managing Director shall have
effect as if it were the exercise of those powers by the Managing Director
himself.
(3) It shall be the duty of
a Managing director to comply with all directions issued to him by the Board
relating to the management of the establishment in respect of which he is the
Managing Director and to furnish the Board with the information required by it.
7.
Directions by Federal Government etc.—(1) The Federal Government may, by notification in the official
Gazette, direct that all or any of its powers under the Order shall, in such
circumstances and subject to such conditions, if any, as may be specified in
the notification, be exercisable also by the Board.
1For notification constituting the Board,
vide S.R.O. No. 816(I)/72, dated 30-9-1972, see Gaz. of P. 1972,
Ext., Pt. II, p. 892.”
2The word “and” omitted by the
Development of Industries (Federal Control) (Amd”t.) Act, 1974 (37 of i974), s.
2.
3Subs. ibid., for full-stop.
4New clause (d) added ibid..
(2) The Federal Government
may from time to time issue such directions to and call for such information or
report from, the board as it may deem necessary.
8.
The Fund.—(1) There shall
be constituted a fund to be called the Board of Industrial Management Fund to
which shall be credited all sums received by the Board under sub-section (2)
and out of which shall be defrayed all expenditure incurred by the Board,
including expenditure on the emoluments of the Chairman and members and the
officers, servants, experts and consultants of the Board.
(2) The Managing Director
in respect of every establishment shall make to the Board each year such
payment to enable it to defray its expenses as the Board may, with the prior
approval of the Federal Government in writing demand of him:
Provided that the aggregate
amount of payments so demanded of the Managing directors in any year shall not
exceed by more than ten per cent the amount of the estimated expenditure of the
Board in that year.
19. Officers and
servants, etc.—(1) The
Board may from time to time appoint such officers, servants, experts and
consultants as it considers necessary for the efficient performance of its
functions, on such terms and conditions as it may deem fit.
(2) The Board may appoint
one or more committees of the Board with such composition and functions as it
may determine.
10.
Adoption of balance sheet. In the case of an establishment ordered or controlled by a
company, the general meeting of the company before which a balance-sheet is
laid shall not, if the Federal Government by order in writing so directs, have
the authority to refuse to adopt the balance-sheet, but nothing in this section
shall be construed to' prevent any shareholder from expressing his views on the
financial affairs of the establishment and a record of the proceedings of such
meeting shall be forwarded to the Federal Government not later than fifteen
days of the meeting.
11.
Indemnity and bar of jurisdiction.—(1) No suit, prosecution or other legal proceeding shall lie
against the Federal Government or the Board or any other person for anything in
good faith done or intended to be done under this Act.
(2) No court shall call in
question, or permit to be called in question, anything done or any action taken
under this Act.
12.
Power to make rules.—(1)
The Board may, with the prior approval of the Federal Government, make such2rules as appear to it
to be necessary for carrying out the purposes of this Act.
1For the Board of Industrial Employees'
Gratuity Rules, 1972 vide S.R.O. No. 364(I)/73, dated 16-3-73, see Gaz. of P.,
1973, Ext..
For the Board of Industrial Management Employee's Medical Rules,
1972, vide S.R.O. No. 365(I)/73, dated 16-3-98 see Gaz., of P., 1973, (Pt. II,
pp. 432,435.)
For the Board of Industrial Management Employee's Provident Fund
Rules, 1973 vide S.R.O. No. 811 (I)/73, dated 6-6-73, see Gaz., of P.. 1973.
2For the Board of Industrial Management
Fund Rules, 1973, vide S.R.O. No. 330(I)/73 dated 13-3-73, see Gaz., of P.,
1973 Ext., (Islamabad) Pt., II, pp. 407—409.
(2) In particular and
without prejudice to the generality of the foregoing power, such rules may
provide for the manner of payment and collection of the payments required to be
made by the Managing Directors under sub-section (2) of section 8.
13.
Delegation. The
Board may, with the previous approval in writing of the Federal Government,
direct that all or any of its powers under this Act shall, in such
circumstances and subject to such conditions, if any, as may be specified by
the Board, be exercisable also by a member or a committee appointed under
sub-section (2) of section 9.
14.
Removal of doubts. For
the removal of doubts it is hereby declared that the powers and functions of
the Federal Government under the Order shall be, and shall be deemed as from
the 21st day of April, 1972, to have been, the powers of the Federal Government
and the provisions of the Order shall have effect accordingly.
1[14A. Validation. All powers exercised and all functions
performed by the Board of Industrial Management constituted under the
Government of Pakistan, Ministry of Finance, Economic Affairs and Development, Notification
No. 2649/72, dated the 23rd February, 1972, at any time before the commencement of this
Act shall be deemed to have been validly exercised and performed as if this Act
were in force on the day on which the powers or functions were so exercised or
performed.].
15. [Repeal
of Ordinance XXXVI of 1972.] Omitted by the Federal Laws (Revision and
Declaration) Ordinance 1981, (XXVII of l981),s.3 and Sch.,II.
THE SCHEDULE
[See section 3]
1. Iron and steel industries.
2. Basic metal
industries.
3. Heavy
engineering industries.
4. Heavy
electrical industries.
5. Assembly
and manufacture of motor vehicles.
6. Tractor
plants, assembly and manufacture.
7. Heavy and
basic chemicals.
8. Petro-chemical
industries.
9. Cement
industry.
10. Public
utilities, that is to say,—
(a) electricity,
generation, transmission and distribution;
(b) Gas; and
(c) Oil
Refineries.
1New section 14A ins. by the Development
of Industries (Federal Control) :Amdl.) Act. 1973 (34 of 1973). s.2.
Go to Index
| LL. B. – I | LL. B. – II
| LL. B. – III | LL. B.
Directory | Home