Updated: Wednesday November 20, 2013/AlArbia'a
Muharram 17, 1435/Budhavara
Karthika 29, 1935, at 06:11:41 PM
[1][1]The
(Pb Act XXIII of 1973)
[
An
Act to provide for the establishment of an Industrial Development Board in the
Preamble.— WHEREAS it is expedient to make provisions
for the establishment of an Industrial Development Board in the
It
is hereby enacted as follows:-
CHAPTER
I
PRELIMINARY
1. Short title, extent and commencement.— (1) This Act may be called the Punjab
Industrial Development Board Act, 1973.
(2) It extends to the whole of the Province
of the
(3) It shall apply to the industries
mentioned in the Schedule.
(4) Government may, at any time, by
notification in the official Gazette, add to or delete from the industries
mentioned in the Schedule and such notifications shall be laid before the
Provincial Assembly.
2. Definitions.— In this Act, unless there is anything
repugnant in the subject or context,—
(a) “Board”
means the Punjab Industrial Development Board;
(b) “Board of Directors” means the Board of
Directors of the Board;
(c) “Chairman”
means the Chairman of the Board;
(d) “company”
means a company as defined in the Companies Act, 1913[2][2], and promoted and established by the Board
for managing and running one or more of the industries;
(e) “Director”
means Director of the Board;
(f) “Government”
means Government of the
(g) “industries”
means the industries mentioned in the Schedule;
(h) “Managing Director” means the Managing Director
of the [3][3][Board];
(i) “prescribed”
means prescribed by rules;
(j) “regulations”
means regulations made under this Act;
(k) “rules”
means rules made under this Act;
(l) “Schedule”
means Schedule to this Act;
(m) “Scheduled
Bank” means a bank for the time being included in the list of banks maintained
under sub-section (1) of section 37 of the State Bank of Pakistan Act, 1956;
and
(n) “specified”
means specified by regulations.
CHAPTER
II
CONSTITUTION
OF THE BOARD
3. Constitution of the Board.— (1) As soon as may be after the commencement
of this Act, there shall be established a Board to be known as the Punjab
Industrial Development Board.
(2) The Board shall be a body corporate and
shall have the power to acquire and hold property, both movable and immovable,
subject to the provisions of this Act and shall have perpetual succession and a
common seal and shall by the said name sue and be sued.
(3) The Head Office of the Board shall be at
4. Management.— (1) The administration and management of the
Board and its affairs shall vest in a Board of Directors which may exercise all
powers and do all such acts and things as may be exercised or done by the Board
in accordance with the provisions of this Act.
(2) The Board shall, in discharging its
functions, act on commercial and national considerations and shall be guided by
such directions as Government may give to it from time to time.
(3) 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 the said
resolution or order, or, if the act has been accomplished, order its
rectification in such manner as may be directed.
5. Board of Directors.— (1) Subject to the provisions of sub-section
(2), the Board shall consist of a Chairman [4][4][, a Vice Chairman] and the following
Directors:-
(i) Secretary
to Government of the
(ii) Secretary to the Government of the
(iii) [5][5][the Managing Director of the Board]; and
(iv) the
Chairman, Planning and Development Board, Government of the
(2) The Chairman [6][6][and the Vice 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 be the chief
executive of the [7][7][Board] under his control and shall,---
(a) be
a whole-time officer of the Board;
(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 [8][8][or for such lesser term as is specified in
the order of his appointment] 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 as such 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 any Managing Director for such
period as Government may determine.
7. Disqualification
of Managing Director and Directors.— 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
(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 Board, or in any
property, which, in his knowledge, is likely to benefit or has benefitted him
as a result of the operations of the Board.
9. Resignation
by or removal of Managing Director or Directors.— Notwithstanding
anything contained in this Act, the Managing Director or a Director may, at any
time before the expiry of his term and upon three months’ notice, resign his
office, or upon similar notice, be removed from office by Government without
assigning any reason:
Provided that Government may, in case of the Managing
Director or a Director, upon payment of three months’ salary and allowances in
lieu of the notice, remove him immediately without assigning any reason.
10. Appointment
of officers, etc.— 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 to it from time to time in
this behalf.
11. Declaration of fidelity and secrecy.— (1) Every Director, Adviser, Officer,
Expert, Consultant, and employee of the Board 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 Board 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, be
forthwith removed from his office or post.
12. Financial and technical advisory
committees.— The Board 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 Board and its employees.— (1) Every Director, Adviser, Officer,
Expert, Consultant and employee of the Board shall be indemnified by the Board
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 any other
Director, Adviser, Officer, Expert, Consultant or employee of the Board 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 Board by reason of the insufficiency or
deficiency in value of or title to any property or security acquired or taken
on behalf of the Board, by wrongful act of any person under a liability to the
Board, 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 [9][9][,the
Vice Chairman], Managing Director, Directors, Advisers, Officers, Experts,
Consultants or employees of the Board 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 the Board.— (1) The meetings of the Board shall be held
at such time and place as may be specified:
Provided
that sixty days shall not intervene between the two meetings:
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.
[10][10][(3) Each
Director including the Chairman and the Vice Chairman shall have one vote but
in the event of equality of votes the Chairman or if the Vice Chairman is
presiding over the meeting in the absence of the Chairman, the Vice 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 the Vice Chairman
and in the absence of both by a Director elected for the purpose by the
Directors present from amongst themselves.]
(5) No act or proceedings of the Board of
Directors shall be invalid merely on the ground of existence of any vacancy in
the Board.
(6) The
minutes of every meeting, 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.
(7) Government
may require a Managing Director to furnish to it,---
(a) any return, statement, estimate, statistics or
other information regarding any matter under the control of the Board;
(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 requisition without any undue delay.
(8) A Managing Director shall prepare and
submit a quarterly report to the Board.
16. Power of Board to associate other persons.— (1) The Board of Directors 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 right to take part in the discussion relating to
such purpose in the meetings of the Board but shall not have right to vote, and
shall not be deemed to be a Director for that or any other purpose.
CHAPTER
III
POWERS,
DUTIES AND FUNCTIONS OF THE BOARD
17. Powers, duties and functions of the Board.— (1) In accordance with the provisions of
this Act, and subject to such general or special order as Government may give
from time to time, the Board shall take measures to prepare schemes to
establish, manage and run the industries on commercial and national
considerations.
(2) In particular the Board may, in order to
carry out the purposes of this Act,---
(a) form
and establish companies to manage and run the industries as are established in
the manner aforesaid;
(b) manage
on behalf of Government the shares purchased by Government in the issued
capital of companies established by the Board;
(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 Board;
(e) give
short and medium term loans or furnish guarantees to the scheduled banks for
loans to the companies established by the Board in the manner aforesaid; and
(f) establish,
manage and run industries under its direct control.
[11][11][(3) The
Board may, with the approval of Government and in such manner as Government may
direct, sell or transfer its shares in or otherwise dispose off the assets of,
the companies and projects established by it.]
18. Loans.— The Board may negotiate and obtain for its industries established
under section 17 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 financial institutions the Board
shall act with the prior approval of Government.
19. Functions of the Board.— The Board shall also be responsible for—
(a) preparing
plans in respect of industries to be established in the public sector;
(b) undertaking
or causing to be undertaken studies to determine economic and technical
feasibility of the industries to be established by the Board;
(c) presenting
to Government schemes for establishment of industries for obtaining its
approval;
(d) implementing
and executing the schemes approved by Government;
(e) taking over, managing and running such
industries as Govern-ment may from time to time decide to hand over to the
Board;
(f) participating
in national and international fairs and exhibitions; and
(g) undertaking
such other functions as are necessary for the successful execution and
management of the industries.
20. Board Fund.— (1) There shall be a fund to be known as the
Punjab Industrial Development Board Fund which shall vest in the Board, and
which shall be utilised by the Board to meet charges in connection with its
functions under this Act including salaries and other remunerations of the
Chairman [12][12][,Vice Chairman], Managing Director,
Directors, Advisers, Experts, Consultants, Officers and other employees of the
Board.
(2) The Punjab Industrial Development Board
Fund shall consist of,---
(a) investment
made by Government;
(b) grants
made by Government;
(c) loans
obtained from Government;
(d) charges
for the management of industries under the direct control of the Board;
(e) Managing
Agency commission in respect of companies managed by the Board;
(f) loans
obtained from the scheduled banks;
(g) foreign
loans obtained by the Board; and
(h) all
other sums received by the Board.
21. Board to be deemed a local authority.— The Board 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 a work which such authority is legally
authorised to carry out.
22. Custody and investment of Industrial
Development Fund.— (1) All
moneys at the credit of the Board shall be kept in such manner as may be
prescribed.
(2) Nothing in sub-section (1) shall be
deemed to preclude the Board from investing any such moneys which are not
required for immediate expenditure in any of the securities described in
section 20 of the Trusts 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 Board shall maintain complete and
accurate accounts in such manner as may be prescribed.
24. Audit of accounts.— The accounts of the Board shall be audited
in such manner as may be directed by Government.
25. Reports to be furnished to Government.— (1) The Board 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 industries 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 Board during the year and copies of the said
statements, accounts and report shall be published in the official Gazette.
(2) The Board shall submit to Government its
proposals for the ensuing financial year at such time and in such manner as may
be prescribed.
CHAPTER
IV
MISCELLANEOUS
26. Winding up.— (1) No provision of law relating to winding
up of companies shall apply to the Board.
(2) When, in the opinion of Government, it
is expedient that the Board shall cease to exist, Government may, by
notification in the official Gazette, declare that the Board shall be dissolved
from such date as may be specified in this behalf in such notification and the
Board shall be deemed to be dissolved accordingly, from such date—
(a) all
properties, funds and dues which are vested in or realisable by the Board and
the Chairman, respectively 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 Board shall be enforceable only
against the Administrator or any other 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 Board and of realising
properties, funds and dues referred to in clause (a) the functions of the Board
and the Chairman under this Act shall be discharged by the Administrator or any
other officer appointed by Government in this behalf;
(d) the Administrator or any other 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 any other officer appointed by Government in this behalf shall
have power to dispose of the properties, assets, rights, etc., of the Board in
such manner as Government may direct from time to time.
(3) Any properties and assets left over
after all the liabilities of the Board have been discharged shall vest in
Government and all liabilities left undischarged after all the properties and
assets of the Board have been disposed of, shall become the liabilities of
Government.
(4) The
Administrator or any other officer appointed by Government in this behalf may
delegate any of his powers under this section to any officer of Government or
to any officer of the Board to such extent and on such terms and conditions as
may be approved by Government.
27. Power to make rules.— (1) Government may make rules for carrying
out the purposes 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 Board;
(b) recruitment
of officers, advisers, consultants, experts and other employees of the Board;
(c) terms
and conditions of service of the officers, advisers, consultants, experts and
other employees of the Board;
(d) functions
of the Advisers;
(e) borrowing
by the Board;
(f) the
date on which and the form in which the annual budget statement of the Board
shall be submitted each year;
(g) procedure
for appropriation and re-appropriation of moneys at the credit of the Board;
(h) manner
and form in which and the authorities to whom returns, reports or statements
shall be submitted;
(i) investment
of Board funds and surplus moneys;
(j) sale
or transfer of industries and other immovable property of the Board ; and
(k) such
other matters relating to the administration and other affairs of the Board as
the Government may think fit to prescribed by rules.
28. Power to make
regulations.— The Board may, with the previous approval of Government make
regulations for all matters not provided for in the rules for which provision
is necessary or expedient for carrying out the purposes of this Act and the
rules.
29. Repeal.— The Punjab Industrial Development Board Ordinance, 1973 (
SCHEDULE
1. Cotton
Textiles.
2. Cotton
Ginning and Pressing.
3. Sugar.
4. Rice
Milling.
5. Flour
Milling.
6. Vegetable Oil and Hydrogenated
Vegetable Oil.
[1][1]This Act was passed by the
Punjab Assembly on 5th December, 1973; assented to by the Governor of the
Punjab on 14th December, 1973; and, published in the Punjab Gazette
(Extraordinary), dated 15th December, 1973, pages 1751-Q to 1751-BB.
[2][2]Now Companies Ordinance 1984.
[3][3]Substituted by the Punjab
Industrial Development Board (Amendment) Ordinance, 1980 (III of 1980), for
“industries”.
[4][4]Added by the
[5][5]Substituted by the
[6][6]Added by the
[7][7]Substituted by the Punjab
Industrial Development Board (Amendment) Ordinance, 1980 (III of 1980) for
“industry or industries”.
[8][8]Inserted by the
[9][9]Added by the
[10][10]Substituted ibid.
[11][11]Added by
the
[12][12]Added by the
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