ORDER C.M. No. 298 of 2009 Allowed subject to all just and legal exceptions. C.M. Disposed of.
Main Case.
2. The statement of the learned counsel for the respondent company noted in the order dated 11.6.2009 is to the effect that the shares of deceased Mian Zahoor Ahmad were mistakenly shown to have been transferred to the names of only his two sons, the respondents, No. 2 and 3 in the annual return filed by the respondent company for the period ending 31.12.2000. That transfer has been reversed by the company and returns to such effect have been filed with the SECP.
3. The statement made by the learned counsel acknowledges that the transfer of shares recorded in the return for the year ending 31.12.2000 was erroneous for ignoring the right of the other legal heirs of the deceased member. Consequently, that transfer is declared to be void. The reversal entries of share carried into effect by the respondent company in its return for the year ending 31.12.2001 shall accordingly form, the basis for the devolution of the shares held by late Mian Zahoor Ahmad to his legal heirs. Learned counsel for the respondent submits that the impediment to the transmission of the shares of Mian Zahoor Ahmad to his legal heirs including his daughter the petitioner is that Article 19 Of the Articles of Association of the respondent company dealing with the matter of transfer of shares of a deceased member does not contemplate transfer to a daughter.
4. The articles of association of a company have the effect of a contract between its members.
These cannot, however, override the Islamic law of inheritance. To the extent that the respondents perceive in Article 19 ibid, a prohibition on the transfer of the rightful share of the petitioner in the property of her deceased father, the same is illegal and void.
5. It is accordingly, directed that the respondent company shall transfer to the name of the petitioner her due entitlement as legal heir of late Mian Zahoor Ahmad in the shares held by him in the respondent company.
6. Petition allowed in the foregoing terms.