SUPREME COURT ORDERS REMOVAL OF UNIFORM OF AVM ARSHAD MALIK DUE TO HIS ILLEGAL DUAL PAF AND PIA JOBS

ISLAMABAD:The apex court has ruled that Marshal Arshad Malik, the Pakistan International Airlines chief executive officer (CEO) – who is also a serving officer of the Pakistan Air Force – shall choose between his two posts.

“An officer on deputation can’t head a [government] institution. It is illegal. Air Marshal Arshad Malik should either relieve himself as a PAF officer or give up the PIA post,” said Chief Justice of Pakistan Gulzar Ahmed on Thursday.

Gulzar Ahmed was heading a three-judge bench hearing Malik’s plea seeking a stay against a Sindh High Court order. On Dec 31, 2019, the SHC restrained Malik from working as PIA’s CEO on a petition filed by the secretary general of PIA’s Senior Staff Association (Sasa).

Subsequently, the PIA moved the Supreme Court against the SHC order and the top court bench – also comprising Justice Ijazul Ahsan and Justice Sajjad Ali Shah –clubbed Malik’s petition with a suo motu case pertaining to the PIA’s losses.

Chief Justice Gulzar noted that the PIA would be left head-less if the air marshal was called on PAF duty. He noted with concern that nothing has changed as the government is trying to run affairs on an ad-hoc basis.

“The PIA needs a permanent chief, who could run the flag carrier in a professional manner and turn it into a profitable entity. The appointment [of Malik], however, shows the federal government’s lack of seriousness,” he said.

The PIA’s counsel Salman Akram Raja earlier argued that a retired air marshal was locked in his office by the PIA union members.

He also cited example of the PIA former chief Air Marshal Noor Khan, who held two positions simultaneously.

Justice Shah noted that Raja’s argument painted a dismal picture of the state’s writ. “Are you saying the union will not let PIA function if there is no fear of armed forces?” he questioned. The bench also rejected the parallels drawn between Malik and Noor Khan.

The top judge noted that the Pakistan Steel Mills (PSM) was also taken over by an acting army officer but it has shown no signs of improvement. “The PSM is posting losses every year.”

The apex court noted that the national carrier should be run professionally and its facilities should not be misused.

Naeem Bukhari, the counsel for the PIA CEO, sought time from the bench, which adjourned hearing till first week of March.

Illegal sale of aircraft

During the hearing on Thursday, PIA’s counsel Salman Akram Raja said that an earlier decision to sell an aircraft was taken by former CEO Bernd Hildenbrande.

“The plane was used for a movie shoot in Malta before being parked at a German airport. We were paid €210,000 for it,” he said.

Justice Gulzar described as “grave” the reports that the plane was lent to an Israel production company. He also noted that the cost of flying and parking the plane in Germany exceeded its selling price.

Raja told the apex court that the PIA board was reviewing why the plane was parked at a German airport for so long.

The chief justice remarked that the national carrier has grounded four aircraft and details of three are still missing. “Should we allow the current management to operate in such a scenario?” he observed and added that the PIA transactions only exist on paper.

The National Accountability Bureau (NAB) informed the bench that the PIA board is concealing details regarding the missing plane and sought time to further probe the matter.

Accepting NAB’s request to seek time, the top judge directed it to continue the investigation.

source: https://tribune.com.pk/story/2160605/1-sc-tells-incumbent-ceo-either-retain-pia-paf-post

ILLEGAL DEPUTATION FROM PAF OF AVM ARSHAD MALIK AS PIA CEO’s INCLUDING 10 MORE IN PAF UNIFORM

By Sohail Khan            January 22, 2020

ISLAMABAD: The Supreme Court (SC) on Tuesday upheld the decision of the Sindh High Court (SHC) restraining Air MarshalArshad Mahmood Malik from discharging his duties as the chief executive officer (CEO) of the Pakistan International Airlines (PIA).

 A three-member SC bench, headed by Chief Justice Gulzar Ahmed, and comprising Justice Ijazul Ahsen and Justice Sajjad Ali Shah, dismissed the petition, filed by Malik, challenging the SHC verdict.

  The Sindh High Court, while hearing the petition filed by one Safdar Anjum, had restrained Arshad Mahmood Malik from working as the PIA CEO.

The petitioner submitted that Air Marshal Malik did not have the academic qualifications required for the post, adding that he did not have any experience with regard to airlines either.

The CEO, however, moved the SC while challenging the SHC verdict. On Tuesday, the court upheld the SHC verdict and assigned the task to the PIA board of governors (BoGs) to run the national flag carrier affairs with the ruling that it would exercise the powers of CEO and chairman of the PIA.

 The court also summoned the record of the instant case pending before the SHC, and held that the appeal filed against the SHC as well as other connected matters would be clubbed and heard jointly.

 During the course of hearing, CJP Gulzar Ahmed observed that the PIA was a national asset, and not personal property of anyone, adding that a case was pending before the apex court pertaining to determining the procedure for appointment of chairman of the national flag carrier.

 The court also expressed grave concerns over Rs700 million contract given by the PIA to a retired Pakistan Air Force officer.

 The chief justice said a news item was published in a newspaper regarding the award of a Rs700 million contract to a retired PAF officer.

 “We will not set aside the verdict of the Sindh High Court, which had restrained Air Marshal Arshad Mahmood Malik from functioning as the PIA CEO,” the CJ remarked.

 Justice Sajjad Ali Shah, another member of the bench, observed that a three-column news published in Daily Jang stating that the PIA

awarded a contract of Rs700 million to a company which was registered only two months back. He said that since the CEO had taken the charge, the fares of the national flag carrier had increased 100 per cent.

 Daily The News and Jang had published a news story, filed by the senior correspondent Umar Cheema wherein it was revealed that the PIA had awarded a contract of Rs700 million for up-gradation of In-Flight  Entertainment (IFE) in 8 Boeing 777 aircrafts to a local company, which was registered only two months before the tender was floated.

 According to the news item, a retired PAF officer, Group Captain (retd) Khwaja Moizuddin is owner of

the M/s Avionic Solutions (Pvt) Limited, who is said to be a close friend of PIA CEO Air Marshal Arshad Malik.

The CJ remarked that the CEO himself came on deputation and brought along a team of 10. “I do not know how the air marshal will operate the airline,” the chief justice questioned and said it is better that he packs up.

 The CJ asked Attorney General Anwar Mansoor to travel by the PIA and witness its condition. The AG submitted that an advertisement was given for the appointment of chief executive officer and Arshad Mahmood was confirmed as the CEO of PIA as per the procedure.

 Justice Sajjad Ali Shah, however, observed that the advertisement had to be reviewed whether it was issued with a “particular design”, adding that the court would look at old advertisements also.

 Meanwhile, the court adjourned the hearing for two weeks.

 Agencies add: The Supreme Court bench also called into question the appointment of 4 air vice marshals, 2 air commodores,  3 wing commanders, and 1 flight lieutenant to the national airline.

 How can Arshad Malik make such appointments when he himself  was appointed on deputation, questioned the top judge.

 The bench also noted that another case pertaining to the PIA chief’s appointment was already being heard in the Supreme Court. Justice Sajjad Ali Shah remarked: “You are running the national airline’s affairs like those of a family business.

How can you manage the PIA when you failed Shaheen Airways miserably?”

The bench observed that the PIA chairman should be appointed according to the law. The government should appoint new CEO of the PIA under the set procedure, directed the apex court. The bench remarked that why the government was running the national flag-career. “Hand over the PIA to the Air Force,” remarked the apex court bench (angrily).

P.S : AVM Arshad Malik Air Force Uniform was removed after he opted to Retired to Maintain His Position as CEO PIA , While the 10 PAF officers are sitting in PIA without Any Legal Basis that has Declared PIA as a Company in Stock Market of Karachi & Deputation is illegal is PIA. 

source: https://www.thenews.com.pk/print/602427-sc-dismisses-pia-ceo-s-plea-for-reinstatement

 

CIVIL AVIATION OF PAKISTAN BEING PARTIALLY PRIVITIZED AFTER BROKEN INTO 2 PARTS

Authorities start delinking process of Civil Aviation Authority

Web Desk On Mar 3, 2020 Last Updated Mar 4, 2020

ISLAMABAD: Federal Minister for Aviation Ghulam Sarwar Khan announced on Tuesday that the authorities have commenced delinking process of the Civil Aviation Authority (CAA) into two separate divisions, ARY News reported.

Ghulam Sarwar Khan said one division of the institution will act as an authority regulatory and second will perform its task as a commercial authority. Separate director generals will be appointed for both divisions under the aviation authority, he added.

In July last year, the minister had announced that the Civil Aviation Authority (CAA) is being distributed into regulatory and service divisions under the new policy.


He had revealed some portions of the plan, saying that the Pakistan Civil Aviation Authority (PCAA) is delinking into two divisions on the base of regulatory and service in principle.

He said, “After the approval of PM Imran Khan, the regulatory function will be separated from the Airport Services as proposed by the federal cabinet.” The minister added that the move will benefit the country’s aviation sector in the longer run.


“Secondly, the National Aviation Policy 2019 stipulates the separation of regulatory function as per the International Civil Aviation Organization (ICAO) requirements. Thirdly, ICAO’s universal safety oversight audit is scheduled in September 2020.”

He also added that delinking requires comprehensive consideration of aspects like assured service quality, separation of human resource, workable reorganisation, steady revenue generation and most important, ensure safety and customer satisfaction.

He detailed that the PCAA’s regulatory will work under cabinet division and other division, Airport Services of Pakistan (ASP) will be under the Aviation Division after the implementation of the plan.

Subsequent to separation, ASP shall be registered with SECP owning 43 airports in Pakistan to continue its operations on the various commercial models, the minister announced.


“After the valuation of assets, interested parties shall be invited for investment in a subsidiary company for initially three major airports including Karachi, Islamabad and Lahore. Another model shall be to invite open tender for operating initially above three referred airports.”

In case no positive response to the above options, the company shall consider a joint venture for operating the airports, whereas, the company shall operate airport by itself in case of no acceptable responses.

While mentioning the timeline for its divisional separation, Khan said there will be the change of management committee, valuation, develop rules of business and legal reviews till August 2019. “And till September 2019, the government will seek stakeholders’ input and processing of the formal approval in its mid process review phase. Later, the government will make its implementation, administrative allocation, ICAO review and SMS review till December 2019.

source : https://arynews.tv/en/authorities-start-delinking-process-of-civil-aviation-authority/

PIA too little, too late ?

MAHEEN USMANI

June 20, 2020 15:35

It was December 2016 and a black goat had just been slaughtered by men kneeling near a widening pool of blood. While the slaughter of goats is an old custom in Pakistan to ward off evil, the scene was surreal because the knife wielding men were Pakistan International Airlines (PIA) employees and the sacrifice had taken place on the tarmac of Islamabad airport in front of an ATR-42 aircraft.

Perhaps this pre-flight ritual was designed to calm the nerves of jittery passengers, as it was the first ATR-42 aircraft to resume flight operations since the planes had been grounded earlier that month following a PIA crash which killed 47 people, including Pakistani celebrity Junaid Jamshed.

After all, why rely on best engineering practices when you can resort to superstition and knee jerk reactions?

Four years on, and not much has changed. When PK 8303 crashed last month killing 98 people on board, PIA Chief Executive Officer Air Marshal Arshad Malik immediately blamed the pilot-- although he backtracked later.

While Aviation Minister Ghulam Sarwar Khan appreciated “the spirit of the people” who pulled out survivors and bodies, he did not explain why airport rescue services were not immediately mobilized by the control tower or the gap of 20 minutes before they arrived even though the site of the crash was in the airport’s vicinity.

As per Aviation Safety Network, PIA has had 52 safety-related incidents since it started flying 54 years ago. During the last eight years, PIA has had eight accidents, including two fatal crashes. And yet, not a single investigation report has been made public-- although the report into the crash of PK 8303 will be unveiled in parliament on June 22.

According to Pakistan Airline Pilots’ Association in Pakistan (PALPA), the violation of the Air Navigation Order (ANO) is the main reason behind the increasing number of accidents. It alleges that pilots are forced to fly without safety protocols and rest and that if they protest, they are given a show cause notice.

In 2019, in a letter to the Director General Pakistan Civil Aviation Authority, President PALPA Rizwan Gondal highlighted crew fatigue due to changes made by PIA in flight duty time limitation planning in violation of the PALPA-PIAC working agreement of 2011-2013.

PIA denied that pilots were being forced to take on extra flights without rest, but on August 31, 2019, PALPA said that eight pilots had resigned that year, citing dysfunctional organizational culture in their resignation letters.

According to sources, PIA CEO Arshad Malik has allowed pilots to voluntarily work even after completing their 12-hour duty.
The other factor responsible for PIA’s safety record is the slipshod maintenance of planes. In 2007, PIA was banned by the European Union because of safety concerns about its ageing fleet.

As per Aviation Safety Network, PIA has had 52 safety related incidents since it started flying 54 years ago. During the last eight years, PIA has had eight accidents, including two fatal crashes. And yet, not a single investigation report has been made public-- although the report into the crash of PK 8303 will be unveiled in parliament on June 22.

A GLANCE AT PIA’S ACCIDENTS

In 2013 PK- 213 had to return to Karachi airport 15 minutes after taking off for Dubai after the pilot spotted a flame in the engine.

In 2019, a ATR-42 airc­raft skidded off the runway while landing at Gilgit airport.

In 2019, PK-759 had to make an emergency landing back at Lahore airport after one of its engines caught fire minutes after takeoff.

PIA is running into losses of over Rs6 billion monthly. If it lacks the resources to upgrade its fleet, how is it spending Rs24 billion yearly on the payment of salaries to 14,500 employees? 

The special audit 2008 to 2017 reveals mammoth salaries (amounting to $5.869 million) being paid to PIA Investment Limited Managing Director and other employees. In 2007, senior management employees received compensation of $195,378. By 2012, the figure had reached $546,553. In 2017, the amount was $811,581: a 315% rise in 10 years.

According to PALPA, on April 1, 2016, PIA spent Rs915 million on salary increases for its pilots.

Despite these hefty payments, the staff recruited has taken a nose dive. 

In November 2013, PIA pilot Irfan Faiz was jailed for nine months in Britain for being drunk before flying an Airbus 310 plane to Islamabad. He was found to be four-and-a-half times over the legal limit to fly. That same year, three drunk flight stewards were arrested in Manchester for misbehaving with a British woman.

In 2014, a PIA air hostess was arrested for carrying drugs at Milan airport. In 2017, an air hostess was arrested in Paris for shoplifting. In 2016, an air hostess was arrested at Lahore airport for trying to smuggle 2.5 kg of gold to the US.

A far cry indeed from its heyday, when PIA lived up to its tagline of ‘Great People to Fly With’ with Air Marshall Nur Khan at the helm-- known for conducting surprise checks. Ranked amongst the top five in global aviation, PIA had a trained crew with air hostess Momi Gull Durrani as its charismatic face.

But Arshad Malik is no Nur Khan. Though directives have been issued by the government for the reform of PIA in the wake of the crash, it is akin to locking the stable door well after the horse has already bolted.


– Maheen Usmani is a Paksitani journalist and author. She tweets @MaheenUsmani   publishsed at https://www.arabnews.pk/node/1692801 

EMPLOYEE INFFECTS WHOLE PAKISTAN INTERNATIONAL AIRLINES AIRCRAFT WITH CORONA

                       PIA FLIGHT PK-350 21 MARCH 2020 KARACHI TO PESHAWAR

On 21 March 2020 , at Approx. 6 PM , Dr S Junaid Abbas , Deputy Chief Medical officer of PIA , Pakistan International Airline , Wrote to PIA Management that an Employee of PIA , P-67000 Mr Faheem Jan of Engineering Department of PIA Pakistan International Airline , traveling on Flight from Karachi to Peshawar PK-350 , Landing at Around 2: 50 PM.

The Above Mentioned Employee of Engineering of PIA had also Stayed in Bachelor Hostel in PIA Employees Colony in Karachi .


BRIBING THE KARACHI HEALTH OFFICIALS

It was Learnt that the Employee of PIA had Bribed the Health Officials of Karachi Airport from Government of Pakistan at Karachi Airport to Board the Aircraft even after he had 102 Degree Temperature and was Detected to let him Board.


The Man Then got the PIA Boarding Pass and also sat in the Airport Lounge while on very Highly infective stage , The Man had 102 Temperature , and was having Shortness of Breath and was having Difficulty in Breathing while on the Flight all the way from Karachi to Peshawar .


IRRESPONSIBLE BAHVIOUR OF PIA EMPLOYEE MR FAHIM ZAMAN


Mr Fahim Zaman P-67000 was Traveling on Jump Seat of the Aircraft in the Galley where the Crew from Karachi was Operating . Just one Man Managed to get Infected the Whole Plane Airbus A-320 with the License Number AP-BLD.

On that day of 21 March 2020 , there were 13 Crew Operating on the Flight was from Karachi Station , was named as follows

Cockpit Crew :

1. P-68163 Captain Saleem Shujat

2. P-65049 First officer Aziz Rehman

Cabin Crew were :


3. P- 48162 Flight Purser Mr Ferooze Ahmad Shiekh

4. P-54391 Miss Firdous Saira

5. P-61631 Adeel Ahmad

6. P-62334 Danish Jalil

7. P-62490 Fayaz Hussain Kalhoro

8. P-62954 Imran Ali Abro


There was Additional 5 Crew Operating on the Flight was from Peshawar Station , who were sent to do Course to Karachi of SEP and who were returning to Peshawar was named as follows :

9. P-62345 Asim Yusaf

10 P-62378 Muhammad Shehzad

11 P-62948 Jehan zeb

12 P-62999 Faisal Pervaiz

13 P-68090 Usman Uddin Mohmand

Apart from Crew there were 163 Passengers Traveling on the Flight , as well as the Flight was almost full .

After Landing at Peshawar Bacha Khan Airport the Man was Checked by Army and Health Officials and he was Immediately handed over to Police and taken to Police Services Hospital Inside of Sectaertiate of Peshawar and Immediately Quarantined ,

While at the Airport he was Checked by PIA Doctor Mrs Ambareen of Peshawar Base , who Diagnosed him as having Corona Virus Infection as Patient was having Shortness of Breath and also difficulty in Breathing as well as 102 Degree Fever , Dr Ambareen then Informed the PIA Deputy Chief medical officer Dr S Junaid Abbas , who advised to Quarantine the Peshawar Cabin Crew for 14 days as well to take the details of all the Passenger of that flight .



HIGHLY IRRESPONSIBLE BEHAVIOUR OF PIA MANAGEMENT OF KARACHI IN DEALING THE CRISES BY NOT QURANTEENING THE KARACHI CREW

But the Karachi Crew operated the flight back to Karachi as PK-351 and took another load of 163 Patients back to Karachi , in Violation of Doctors Advice and possibly infecting another 163 People rather Families .

According to Reliable information the Cabin Crew of Karachi and also the Cockpit crew are still flying the PIA flights .

The Aircraft AP-BLD , is was used Again to fly to Lahore from Karachi and then to Quetta and no Disinfectant was used to Clean the Aircraft and it I still in Flight what a Shame that Pia under the AVM of Airforce in Uniform is making a Fool of People of Pakistan and also Airforce . what a shame and Height of Ignorance that is worthy of Shock

PESHAWAR CABIN CREW WERE QURANTINED WITH THIER FAMILIES INSTEAD OF BEING IN ISOLATION PIA DOCTOR RREFUSED TO DO CORONA TEST

The Peshawar Cabin crew according to information is now confined to their Homes , with their families and Kids instead of being , at designated places shamefully putting the lives of their Families at risk

The PIA Doctor, Mr Rizwan Awan in Peshawar Refused to do the Corona Test and Advised the Cabin Crew to do it from their own Pocket or contact the government of Pakistan Isolation Center .

Such an Irresponsible Manner of Handling the Corona Crises is highly Shameful and Shocking.

GM HEALTH NAEM YAQOOB AN INCOPETANT ENGINEER ADVSING CEO PIA ON CORONA VIRUS INSTEAD OF DOCTOR ON CORONA VIRUS 

Pathetic and Poor management of PIA and is reason of Spread of Corona Virus as it has appointed an Engineer Mr Naem Yaqoob as , as GM Health and he is especially Incompetent's person to be Heading the Health Division of PIA company Limited and it shows , how the Fate of Pakistan International Airline is appointed in Hands of a Stupid and In competent Man who is not even Qualified to be Heading the health Portfolio of PIA GM Health.

PIA Hr Manager Kamran with Automatic Weapon and Naem Yaqoob 2nd from Right standing

As he is the one who sits in Board Meeting of PIA Management and he is the one Advising the CEO PIA AVM Serving in Uniform of Pakistan Airforce and Related to Gen Bajwa the Pakistan Army Chief as Brother of Husband of Sister of Pakistan Army Chief on Extension .


Mr Naem Yaqoob was Blue eyed Person of Muslim League of Nawaz Shareef and he was also GM flight Services during his Tenure and when PTI Government came he was Appointed as Health GM of PIA as they had to Store him and Park him in this Use less Portfolio that was not worthy of being headed by a Doctor which is both Stupid and Highly Irresponsible by Government of Pakistan as it was Handed over to Naem Yaqoob , and he showed his incompetence in this Corona Crises handling and Advising AVM Arshad malik

PIA OPERATES 46 ROUTINE AND 36 HAJ FLIGHTS WITHOUT A SINGLE PASSENGER ON BOARD

PHOTO BY IANS OF PIA PLANE 

IANS/Islamabad

Filed on September 21, 2019

The Pakistan International Airlines (PIA) operated as many as 46 flights from the Islamabad Airport in 2016-17 with no passengers onboard the planes, a media report said on Saturday.

An audit report, a copy of which is available with Geo News, revealed that the national flag carrier suffered loss of Rs180 million by operating without passengers.

It said 36 additional flights on the Haj and Umrah routes were also operated without passengers and no inquiry was initiated despite the administration being informed about the matter.

The audit report said the issue has been declared a negligent act in the official documents.

In order to reduce operational costs, PIA last month laid off nearly 1,000 surplus employees. No enquiry was launched against the PIA Managers for this Lapse of Duties for the Record 

source : https://www.khaleejtimes.com/business/aviation/pakistani-airline-operated-46-flights-without-passengers-    

PIA TURNED INTO PUBLIC LIMITED COMPANY INSTEAD OF CORPORATION

HOW PIA WAS CHANGED INTO PUBLIC LIMITED COMPANY WITH GOVERNMENT HAVING 51% SHARES ONLY FROM A CORPORATION THAT WAS MADE IN 1956 SECRETLY AND SILIENTLY WITHOUT THE EMPLOYEES BIENG IN KNOWLEDGE AND ALSO KEEPING IN DARK PEOPLE OF PAKISTAN BY NAWAZ SHARIF IN 2016 

PML  MUSLIM LEAGUE GOVERNMENT BY PASSING A ACT FROM PARLIAMENT OF PAKISTAN . CHANGED PIAC INTO PIAL 

KNOW THE DIFFERNECE BETWEEN THE PIAC CORPORAION AND CURRENT PIAL AS PUBLIC LIMITED COMPANY .  

THESE ARE THE FIRST STEPS TOWARDS PRIVITIZATIONS , A PROFITBALE AIRLINE COMPANY IS BEING MADE LOSS SHOWING BY FRAUD , AS THE BUYERS WANT TO GET IT ON LOW PRICE. 

 IT IS START OF LOOT BAZAR , AS THE CORE BUSINESS OF AIRLINE IS VERY PROFITABE BUT THE ALLIED ENTITIES ARE NOT PROFITTABLE LIKE REAL ESTATE AND HOTELS AND ENGINEERING SECTION AND ALSO CARGO BUSINESS AND THE PROCURMENT OF SPARES AND OIL ARE LOSS MAKING BUT ARE NOT FIXED BY CURRENT PIA MANAGERS , 

AS THE BUYERS WILL BUY THE PROFITABLE SECTION OF PIA AIRLINE AND LEAVE THE LOSS MAKING ENTITIES TO PAKISTAN GOVERNMENT A CUNNING SCHEME OF FRAUD UNDER PROCESS AND PIA EMPLOYEE WILL BE LAID OFF ON ONE PRETEXT OR ANOTHER BY MAKING THIER LIVES MISERABLE . 

The Pakistan International Airlines Corporation (Conversion) Act, 2016

ACT NO. XV OF 2016

[19th April 2016]

An Act to provide for setting up of the Pakistan International Airlines Corporation into a public limited company

WHEREAS it is expedient to provide for conversion of the Pakistan International Airlines Corporation into a public limited company under the Companies Ordinance, 1984 (XLVII of 1984) and to deal with ancillary matters;

It is hereby enacted as follows:---

1. Short title, extent and commencement.—(1) This Act may be called the Pakistan International Airlines Corporation (Conversion)Act, 2016.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,---

(a) “arrangement” means an arrangement in writing between the Company and any relevant entity setting forth the terms, conditions and manner of transfer of one or more assets of the Company to a relevant entity along with the consideration for the same, which transfer is subject to be provisions of section 4;

(b) “assets” includes all properties, rights and entitlements of every description and nature whatsoever, whether present or future, actual or contingent, and tangible or intangible, in Pakistan or elsewhere and includes but not limited to property held on trust, both movable and immovable, benefits, claims, receivables, cash balances, documents, investments, privileges and powers;

(c) “Company” means Pakistan International Airlines Corporation Limited incorporated under the Companies Ordinance;

(d) “Companies Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984);

(e) “Company request” means a written request made by the Company to the Federal Government to issue an order pursuant to section 4 to effect transfer to a relevant entity of specified assets in terms of the relevant arrangement, provided nevertheless, such request may only be made once the Company has to that extent complied with the provisions of sub-section (3) of section 196 of the Companies Ordinance and the applicable code of corporate governance;

(f) “conversion” with all its cognate expressions means, in accordance with the provisions of this Act, the conversion of the Corporation into a Company;

(g) “commencing date” means the date of promulgation of this Act;

(h) “Corporation” means the Pakistan International Airlines Corporation established under the Pakistan International Airlines Corporation Act, 1956 (XIX of 1956);

(i) “liabilities” includes all borrowings, duties, obligations, loans encumbrances of every description and nature whatsoever in Pakistan or elsewhere, whether present or future, actual or contingent, and disclosed or undisclosed;

(j) “order” means any order issued by the Federal Government pursuant to sub-section (1) of section 4 and notified in the official Gazette and the expression “orders” shall be construed accordingly;

(k) “PIAC Act” means the Pakistan International Airlines Corporation Act, 1956 (XIX of 1956);

(l) “proceedings” includes any suit, arbitration or other legal or administrative proceedings applications, appeals, awards, reviews or revisions filed or pending;

(m) “relevant entity” means any body corporate or company owned or controlled by the Federal Government or the Federal Government itself;

(n) “specified assets” means the assets specified in the relevant arrangements;

(o) “undertakings” include all projects, ventures and operations undertaken by the Corporation, individually or collectively, in collaboration with some other person; and

(p) “validity period” means the period starting from the commencing date and ending on the second anniversary of the commencing date, or on such earlier date as may be notified by the Federal Government in the official Gazette.

3. Conversion of Corporation into a Company.—(1) The Corporation shall be deemed to have been converted into a public company limited by shares with effect from the commencing date.

(2) As and from the commencing date,---

(a) the Company shall be deemed to hold and own all assets and liabilities of the Corporation without any conveyance, alienation or assignment and without any further act, deed or registration and without discharging or invalidating any contract; and

(b) without prejudice to the generality of the foregoing clause, the Company shall,---

(i) be entitled to the benefit of all notifications, licenses, permissions, sanctions, authorizations, concessions, decrees, air service agreements, orders and benefits whatsoever issued or granted in favour of the Corporation as on the commencing date, including, butnot limited to the permission connected with the listing of the securities of the Corporation on the relevant stock exchanges; and

(ii) be deemed to have taken over and shall be entitled to enforce, all rights, licenses, grants and concessions and to have assumed all liabilities of the Corporation and shall be liable to pay and discharge all liabilities of every description and nature whatsoever of the Corporation.

(3) The shareholders of the Company shall be deemed without any fresh issuance of shares to own and hold the same number of fully paid shares with such rights and privileges (including as to class, kind and face value) as they owned and held in the Corporation on the commencing date; and the authorized capital of the Company shall be deemed to be equivalent to the authorized capital of the Corporation as on the commencing date and no fee or charges shall be payable in this regard.

(4) An proceedings of every description and nature whatsoever by or against or relating to the Corporation pending on the commencing date in any court, tribunal, or other authority shall be continued, defended, prosecuted and enforced by or against or relating to the Company in the same manner and to the same extent as they would have been continued, defended, prosecuted and enforced by or against or relating to the Corporation, and the same shall not abate, be discontinued, prejudiced or otherwise affected by the provisions of this Act.

(5) The Company shall be deemed to be the successor-in-interest of the Corporation, and the name of the Company shall be deemed to have been substituted for the name of the Corporation in all contract, agreements, licenses, orders, certificates, powers of attorney, consents, undertakings, leases, grants, concessions, records of Central Depository Company^. of Pakistan Limited and all other instruments or documents of every description and nature whatsoever relating to the Corporation and no objection shall be entertained by any court, tribunal or authority in regard to such substitution or on the ground that any such contract, agreement or document as aforesaid was, or is, I, or with, the name of the Corporation and not the Company.

(6) All employees of the Corporation shall be deemed to be employees of the Company on the same remuneration and other conditions of service, rights and privileges including but not limited to the provisions as to their pension, provident fund and gratuity, as the case may be, and other matters as were applicable to them before the conversion, including all existing retirement benefits of the employees whether funded or non-funded:

Provided that,---

(i) notwithstanding anything contained in this Act or any other law, or any decision of any court or tribunal, the employees of the Company shall continue to be governed by non-statutory contractual terms, conditions, rules and regulations of service and such terms, conditions, rules and regulations which shall not acquire, or be deemed to have acquired or be treated as laving acquired, statutory status;

(ii) no person deemed to be employed by the Company under this section shall be entitled to any compensation or benefit as a consequence of the conversion of the Corporation into a Company;

(iii) the salaries, emoluments and all other terms of service of employees, whether permanent or contractual, shall not be changed to their disadvantage; and

(iv) pensions and other existing obligations of the Corporation to retired employees shall not be changed to their disadvantage.

(7) Notwithstanding the provisions of section 146 of the Companies Ordinance, the Company shall, upon conversion, continue all business and undertakings of the Corporation as were being carried on immediately prior to the commencing date.

4. Power to pass orders for^-the transfer of assets.—(1) During the validity period and subject to a prior Company request, the Federal Government may issue orders providing for the transfer of specified assets to a relevant entity substantially on the terms set forth in the relevant arrangement.

(2) The orders shall be binding on the Company, the relevant entity and any other person having any right, claim or liability in relation to the Company or any relevant entity.

(3) As and from the date specified in the order, the specified assets shall, by virtue and to the extent provided in the relevant order, stand transferred to, and vest in, the relevant entity, without any conveyance, alienation or assignment and without any further act, deed or registration and without discharging or invalidating any contract, and be subject to the terms of the relevant order in all cases.

(4) Representation on the Board of Directors and all other rights and privileges of shareholders of the Company, or any of its subsidiary companies carrying on air-transport business, shall be proportionate to their share-holding.

Explanation.—Management control of the Company and any of its subsidiary companies in the above circumstances shall continue to vest in the majority share-holder, which shall be the Federal Government and whose share shall not be less than fifty one percent.

(5) The Federal Government shall carry out or cause to be carried out valuation of the assets of the Company, and its subsidiary companies carrying on air-transport business, by a recognized valuator before transferring any shares of these companies to a third party.

(6) The Public Procurement Regulatory Authority Ordinance, 2002 (Ordinance XXII of 2002) and rules framed thereunder, as presently applicable, shall continue to apply to all transactions under this Act.

5. Guarantees to remain in force.—Notwithstanding the repeal of the PIAC Act, all guarantees given by the Federal Government to any person, including foreign or local institutions, to secure any of the liabilities of the Corporation shall remain in full force and affect as though they were given on behalf of the Company.

6. Waiver from taxes, duties, fee etc.—The Federal Government may, by notification in the Official Gazette, waive any tax, duty, fee or any other charge that may be payable unler any Federal law for the time being in force.

7. Name and Headquarters of Company.—(l) The name of the Company shall not be changed without the consent, in writing, of the Federal Government.

(2) The Headquarters of the Company and any of its subsidiary companies carrying on air-transport business shall be at Karachi.

8. No gain or loss.—Neither the conversion nor the transfer of any asset of the Company through an order shall given rise to any gain or loss under the Income Tax Ordinance, 2001 (XLIX of 2001).

9. Act to override.— The provisions of this Act and the orders issued hereunder shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

10. Removal of transitional difficulties.—if any difficulty arises during the validity period in giving effect to any provision of this Act, the Federal Government may, by notification in the official Gazette, make such provisions as may appear to it to be necessary for the purpose of removing such difficulty.

11. Repeal.—(1) The PIAC Act is hereby repealed.

(2) On repeal of PIAC Act under sub-section (1), nothing contained in the said Act shall be applicable to the Company, its shareholders or any other person that may have had interest in the Corporation immediately prior to the conversion.

PIA CORPORATIONS ACT 1956 WHICH WAS REMOVED

he Pakistan International Airlines Corporation Act, 1956

¹ACT NO. XIX OF 1956

[18^th April, 1956]

An Act to establish the Pakistan International Airlines Corporation

            WHEREAS it is necessary to provide for the establishment of a Corporation to facilitate acquisition of the air‑transport under­taking of the Orient Airways Limited, and to make further and better provision for the operation and development of air‑transport services and purposes connected therewith;

            It is hereby enacted as follows:---

            1. Short title, extent and commencement.^___(1) This Act may be called the Pakistan International Airlines Corporation Act, 1956.

            (2) It extends to the whole of Pakistan.

            (3) It shall come into force at once.

            2. Interpretation. In this Act, unless there is anything repugnant in the subject or context,---

(a) “Board” means the Board of Directors of the Corporation;

²[(aa) “Chairman” means Chairman of the Board;]

(b) “Corporation” means the Pakistan International Airlines Corporation established under this Act; and

(c) “prescribed” means prescribed by rules or regulations made under this Act.

¹ For Statement of Objects and Reasons, See Gaz. of Pak., 1956, Ext., dated the 5^th April, 1956, p. 586.

² Cl. (aa) ins. by the Pakistan International Airlines Corporation (Amdt.) Act, 1975 (1 of 1976), s. 2 (w.e.f. 8^th January, 1976).

3. Establishment and incorporation.^___ (1) As soon as may be after the commencement of this Act, the ¹[Federal Government] shall establish a Corporation to be called the Pakistan International Airlines Corporation.

(2) The Corporation shall be a body corporate by the name of the Pakistan International Airlines Corporation, 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 to carry out the functions and duties of the Corporation under this Act, and shall by the said name sue and be sued.

4. Functions of the Corporation.^___ (1) It shall be the function of the Corporation to take over the undertaking of the Orient Airways Limited hereinafter in this Act referred to as the “said Company” and all such under-­takings of the ¹[Federal Government] as were undertaken for the purposes of the Corporation and, subject to the provisions of the ²[Civil Aviation Ordinance, 1960] to provide and further develop safe, efficient, adequate, economical and properly co‑ordinated air‑transport services, internal as well as international ; and the Corporation shall so exercise its powers as to secure that air‑transport services are developed to the greatest possible advantage in the interests of the country.

(2) Without prejudice to the generality of the powers conferred by sub‑section (1) the Corporation shall in particular have power,---

(a)        to operate any air‑transport service or any flight by aircraft for a commercial or other purpose, and to carry out all forms of aerial work;

³[(aa)   to acquire, own, run, manage, or participate in the running or management of, any hotel or business connected therewith;]

¹ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government” (w.e.f. 28^th July, 1975).

² Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s . 3 and II Sch.

³ New cl. (aa) ins. by the Laws Amendment Ordinance, 1965 (39 of 1965), s. 3, (w.e.f. 4^th October, 1965).

(b)        to provide for the instruction and training in matters connected with aircraft or flight by aircraft of persons employed or desirous of being employed either by the Corporation or by any other person ;

(c)        with the previous approval of the ¹[Federal Govern­ment], to promote any organisation outside Pakistan for the purpose of engaging in any activity of a kind which the Corporation has power to carry on ;

(d)       to acquire, hold or dispose of any property, whether movable or immovable, or any air‑transport under­taking ;

(e)        to repair, overhaul, reconstruct, assemble or recondi­tion aircraft, vehicles or other machines and parts, accessories and instruments thereof or therefor and also to manufacture such parts, accessories and instru­ments, whether the aircraft, vehicles or other machines are owned by the Corporation or by any other per­son ;

(f)        to do all things incidental to or connected with any of the matters referred to in sub‑section (1) and in clauses (a) to (e).

(3) In discharging its functions the Corporation shall have careful regard to business principles.

5. Administration of the affairs of the Corporation.^___ (1) The general direction and the administration of the Corporation and its affairs shall vest in the Board of Directors which may exercise all powers and do all acts which may be  exercised or done by the Corporation.

(2) The ¹[Federal Government] may, as and when it considers necessary, issue directives to the Corporation on matters of policy, and such directives shall be binding on the Corporation. If a question arises whether any matter is a matter of policy or not, the decision of the ¹[Federal Government] shall be final.

¹ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government” (w.e.f. 28^th July, 1975).

¹[6. The Board of Directors.^___ (1) The Board of Directors shall consist of the follow­ing ²[eleven] Directors, namely:---

(a)        The Chairman;

(b)        ³[eight] Directors to be nominated by the Federal Government; and

(c)        two Directors to be elected by shareholders other than the Federal Government.

            (2) Every Director, other than the Chairman, shall,---

(a)        perform such special duties as the Board may, by regulations, assign to him; and

(b)        receive such remuneration, fees or allowances, and enjoy such privileges, as the Federal Government may determine].

            7. Terms of office of Directors.^___ (1) An appointed Director ⁴*        *            * shall hold office for a term of three years unless sooner removed by the ⁵[Federal Government], and may be appointed thereafter for a further term or terms of such duration as the ⁵[Federal Government] may in appointing him therefor, determine.

            (2) An elected Director ⁶*    *     * shall hold office for a term of three years and continue in office after the expiry of his term until his successor is elected, and shall be eligible for re‑election.

¹ The original section 6 has been Subs. by the Pakistan International Airlines, Corporation (Amdt.) Act, 1975 (1 of 1976), s. 3 (w.e.f. 8^th January, 1976), which have successively been amended by the Pakistan International Airlines Corporation (Amdt.) Ordinance, 1959 (19 of 1959), s. 2 (w.e.f. 2^nd April, 1959), the Pakistan International Airlines Corporation (Amdt.) Ordinance, 1960 (40 of 1960), s. 2 (w.e.f. 6^th October, 1960), and F.A.O., 1975, Art. 2 (w.e.f. 28^th July, 1975) to read as above.

² Subs. by the Pakistan International Airlines (Amdt.) Ordinance, 1983 (4 of 1983), s. 2, for “ten”.

³ Subs. ibid., for “seven”.

⁴ The words “other than the Managing Director” were first ins. by Ord. 19 of 1959, s. 3 and then omitted by Act 1 of 1976, s. 4.

⁵ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”.

⁶ The original words  “or a Director who is deemed to be elected” omitted by Ord. 19 of 1959, s. 3.

            (3) A casual vacancy in the office of a Director shall be filled by appointment or election, as the case may be, and a Director elected to fill a vacancy shall hold office for the unexpired period of the term of his predecessor:

            Provided that it shall not be necessary to elect a Director to fill a casual vacancy of an elected Director occurring within three months of the end of the term in which it occurs.

            (4) Directors who are not servants of the Government shall be paid such fees for attending the meetings of the Board or of any executive committee appointed by the Board of which they are members as may be prescribed by the Board.

            (5) No act or proceeding of the Board shall be invalid merely on the ground of the existence of any vacancy in, or any defect in the constitution of the Board.

            ¹[8. Chairman.^___ (1) The Federal Government shall appoint a Chairman of the Board, who shall be the chief executive of the Corporation.

            (2) The Chairman shall, unless removed earlier, hold Office for a period of three years on such terms and conditions as the Federal Government may determine; and shall, subject as aforesaid, be eligible for re-appointment.

            (3) The Chairman shall exercise such powers and perform such functions as may be assigned to him by the Board or as the Federal Government may, from time to time, determine.

            (4) The Chairman shall receive such remuneration, fees or allowances, and enjoy such privileges, as the Federal Government may determine.

¹ Ss. 8 and 8A have been subs. by the Pakistan International Airlines Corporation (Amdt.) Act, 1975 (1 of 1976), s. 5 (w.e.f. 8^th January, 1976), for the original s. 8 which has successively been amended by the Pakistan International Airlines Corporation (Amdt.) Ordinance, 1959 (19 of 1959), s. 4 (w.e.f. 2^nd April, 1959), the Pakistan International Airlines Corporation (Amdt.) Act, 1966 (17 of 1966), s. 2 (w.e.f. 18^th June, 1966), and F.A.O., 1975, 1975, Art. 2 and Sch. (w.e.f. 28^th July, 1975), to read as above.

            8A. Managing Director. ^___ (1) There shall be a Managing Director of the Corporation, who shall be appointed by the Federal Government after consultation with the Chairman.

            (2) The Managing Director shall hold office for such period, and be subject to such terms and conditions of service, as the Federal Government may determine after consultation with the Chairman.

            (3) The Managing Director shall exercise such powers and perform such functions as may be prescribed by the Board and as the Chairman may assign to him from time to time.].

            9. Disqualification of Directors.^___ (1) No person shall be appointed or elected or shall continue to be a Director who,---

(a)        is or at any time has been convicted of an offence involving moral turpitude; or

(b)        is or at any time has been adjudicated insolvent; or

(c)        is found lunatic or becomes of unsound mind; or

(d)       is a minor.

            (2) No person ¹[other than the ²[Chairman]] ³[or a person specified by the Federal Government] shall be appointed or elected or shall continue to be a Director who is or who becomes a member of the salaried staff of the Corpora­tion.

            (3) No Director shall continue in office after absenting himself from three consecutive meetings of the Board without the leave of the Chairman or, in the case of the Chairman, of the ⁴[Federal Government].

¹ Ins. by the Pakistan International Airlines Corporation (Amdt.) Ordinance, 1959, (19 of 1959), s. 5.

² Subs. by the Pakistan International Airlines Corporation (Amdt.) Act 1976 (1 of 1976,) “s. 6 for Managing Director”.

³ Ins. by the Pakistan International Airlines (Amdt.) Ordinance, 1981 (18 of 1981), s. 2.

⁴ Subs. by F.A.O., 1975, Art. 2, and Table for “Central Government”.

            10. Appointment of officers, etc. ¹[(*)] The Corporation may appoint such officers, advisers and employees as it considers necessary for the efficient perfor­mance of its functions on such terms and conditions as it may see fit ²[:]

            ²[Provided that, if the Federal Government so directs, the Corporation shall appoint an officer, adviser or employee having such qualifications, on such terms and conditions and for performance of such functions as the Federal Government may specify.]

³*                     *                       *                       *                       *                       *                 *

            11. Meetings of the Board.^____(1) The meetings of the Board shall be held at such time and such places as may be prescribed:

            Provided that a meeting may also be otherwise convened by the Chairman when he so thinks fit and shall be convened if two or more Directors so request in writing addressed to the Chair­man.

            Quorum. (2) To constitute a quorum at a meeting of the Board not less than ⁴[three] Directors shall be present.

            (3) Each Director including the Chairman shall have one vote, and in the event of an equality of votes the Chairman shall have a casting or a second vote.

            (4) ⁵[In the absence of the Chairman], the Directors present shall choose one from among themselves to be the Chairman of the meeting.

¹ Sub-section (1) which was re-numbered by ord. 53 of 1984 has been omitted by the Pakistan International Airlines (Amdt.) Act, 1989 (7 of 1989), s. 2.

² Subs. and added by the Pakistan International Airlines (Amdt.) Ordinance, 1980 (24 of 1980), s. 2.

³ Sub-section (2), (3) and (4) which were Added by Ord. 53 of 1984, has been omitted by Act 7 of 1989, s. 2.

⁴ Subs. by the Pakistan International Airlines Corporation (Amdt.) Ordinance, 1959 (19 of 1959), s. 6, for “five”.

⁵ Subs. and shall be deemed to have been so subs. by the Pakistan International Airlines Corporation (Amdt.) Act, 1966 (17 of 1966), s. 3, (w.e.f. 18^th June 1966) for “if for any reason the Chairman is unable to be present at a  meeting”.

12. Head Office. The Corporation shall establish its head office in Karachi and may establish offices within Pakistan and abroad if the Board so thinks fit.

13. Deposit account. The Corporation may open an account in the National Bank of Pakistan or in any scheduled bank in Pakistan or, with the prior approval of the ¹[Federal Government], in any other bank in Pakistan. The Corporation may open an account outside Pakistan in any bank which may be a scheduled bank according to the law of the country in which the account has to be opened, or with the prior approval of the ¹[Federal Government] in any bank.

14. Investment of funds. The Corporation may invest its funds in any securities of the ¹[Federal Government] or a Provincial Government.

15. Borrowing powers. The Corporation may, with the previous sanction of the ¹[Federal Government] and on such terms and conditions as may be approved by the Government, borrow in Pakistan currency or in foreign currency.

16. Audit.^____ (1) The accounts of the Corporation shall be audited by not less than two auditors holding certificates under section 144 of the Companies Act, 1913 (VII of 1913), who shall be appointed by the ¹[Federal Government], in consultation with the Comptroller and Auditor‑General of Pakistan hereinafter referred to as the Auditor-­General, on such remuneration, to be paid by the Corporation, as the ¹[Federal Government] may fix, and the Auditor‑General shall have the power to give directions to the auditors in regard to the extent and method of their audit subject to the provisions of the Companies Act, and to prescribe the forms of accounts to be maintained by the Corporation consistent with the requirements of that Act.

¹ Subs. by F.A.O., Art. 2 and Table  for “Central Government”. (w.e.f. 28^th July, 1975).

(2) Notwithstanding the provisions of the preceding sub-­section, the Auditor‑General, where the ¹[Federal Government] is required under section 26 to make good any losses sustained by the Corporation shall, and in other cases may, either of his own motion or upon a request received in this behalf from the ¹[Federal Government], undertake such audit of the accounts of the Cor­poration at such time as may be considered necessary, and the Corporation shall, at the time of such audit, produce the account books and connected documents at such place or places as the Auditor‑General may fix, and furnish such explanations and infor­mation as the Auditor‑General or an officer or officers authorized by him in this behalf may ask for.

(3) Every auditor appointed under sub‑section (1) shall be given a copy of the annual balance sheet of the Corporation and shall examine it together with the accounts and vouchers relating thereto, and shall have a list delivered to him of all books kept by the Corporation and shall at all reasonable times have access to the books, accounts and other documents of the Corporation, and may in relation to such accounts examine any Director or officer of the Corporation.

(4) The auditors shall report to the shareholders upon the annual balance sheet and accounts and in their report they shall state whether in their opinion the balance sheet is a full and fair balance sheet containing all necessary particulars and properly drawn up so as to exhibit a true and correct view of the state of the Corporation’s affairs, and in case they have called for any explanation or information from the Board, whether it has been given and whether it is satisfactory.

(5) The Board may at any time issue directions to the auditors requiring them to report to it upon the adequacy of measures taken by the Corporation for the protection of its shareholders and creditors or upon the sufficiency of the inform­ation and other means placed at the disposal of the auditors in auditing the affairs of the Corporation.

¹ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government” (w.e.f. 28^th July, 1975).

            ¹[17. Accounts.^___ (1) A statement of its accounts audited by the auditors referred to in the preceding section and a report by the Directors thereon shall be furnished to the ²[Federal Government] by the Corporation ³[within seven months of the close] of every financial year.

            ⁴[(2) The ²[Federal Government] shall, as soon as possible, lay the statement and report, received by it under sub‑section (1) before the National Assembly.]

            18. General meetings.^__ (1) A general meeting (hereinafter referred to as the annual general meeting) shall be held at the head office of the Corporation annually within six months from the date on which the annual accounts of the Corporation are closed, and a general meeting may be convened by the Board at any other time.

(2) The shareholders present at the annual general meeting shall be entitled to discuss the annual accounts, the annual report of the Board on the working of the Corporation, and the auditors' report on the annual balance sheets and accounts.

            (3) Every shareholder holding a share of Rs. 10 shall be entitled to a vote, and to an additional vote for every additional share of rupees ten ; and for this purpose two shares of rupees five each shall be reckoned to be the equivalent of a share of rupees ten.       

¹ Section 17 was renumbered as sub‑section (1) of that section by the Pakistan International Airlines Corporation (Amdt.) Act, 1958 (16 of 1958), s. 2 (with effect from the 18th April, 1956).

² Subs. by F.A.O., 1975, Art. 2, and Table for “Central Government” (w.e.f. 28^th July, 1975).

³ Subs by the Pakistan International Airlines Corporation (Amdt.) Ordinance, 1959 (49 of 1959), s. 2, for “as soon as possible after the end” (w.e.f. 3^rd September, 1959).

⁴ Sub-section (2) added by Act 16 of 1958, s. 2.

19. Declaration of fidelity and secrecy. Every Director, auditor, officer or servant of the Corporation shall, before entering upon his duties make a dec­laration of fidelity and secrecy in the form set out in the Schedule to this Act.

20. Indemnity of Directors.^___ (1) Every Director shall be indemnified by the Cor­poration against all losses and expenses incurred by him in the discharge of his duties except such as are caused by his own willful act or default.

            (2) A Director shall not be personally responsible for the acts of any other Director or of any officer or servant of the Corporation for any loss or expense resulting to the Corporation by reason of the insufficiency or deficiency in value of or title to any property or security acquired or taken on behalf of the Corporation, or by the wrongful act of any person under a liability to the Corporation, or by anything done by him in good faith in the execution of the duties of his office.

            21. Transfer to the Corporation of the undertaking of the Orient Airways Ltd.^____ (1) On such date as the ¹[Federal Government] may by notification in the official Gazette appoint (hereinafter in this Act referred to as “the appointed date”), which shall be as soon as may be after the appointment of the first Board of Directors, under sub‑section (1) of section 6, the entire undertaking of the said Company shall be transferred to and vested in the Corporation.

(2) The undertaking so transferred and vested shall include all assets, rights, powers, authorities and privileges and all property, movable and immovable, including lands, works, workshops, aircraft, cash balance, reserve funds, investments and book debts and all other rights and interests arising out of such property as were immediately before the appointed date in the ownership, possession or power of the said Company in relation to the under­taking whether within or without Pakistan and all books of account and documents relating thereto, and all borrowings, liabilities and obligations of whatever kind then subsisting of the said Company in relation to the undertaking.

¹ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government” (w.e.f. 28^th July, 1975).

(3) Subject to the other provisions of this Act, all contracts and working arrangements subsisting immediately before the appointed date as affecting the said Company shall, in so far as they relate to the undertaking of the said Company, cease as from the appointed date to have effect or to be enforceable against the said Company or any person who was a surety or had guaranteed the performance thereof, and shall be enforceable and of effect against or in favour of the Corporation in which the undertaking has vested as if instead of the said Company the Corporation has been named therein.

(4) Subject to the other provisions of this Act any proceed­ing or cause of action pending or existing immediately before the appointed date by or against the said Company in relation to its undertaking may as from the appointed date be continued or enforced by or against the Corporation in which it has vested by virtue of this Act as it might have been continued or enforced by or against the said Company if this Act had not been passed, and shall cease to be continued or be enforceable by or against the said Company or its surety or guarantor.

22. Certain existing arrangements to continue. All contracts and working arrangements made and all liabilities incurred by the ¹[Federal Government] before the appoint­ed date in connection with or for the purposes of the Corporation shall be deemed to be made or incurred by the Corporation and have effect accordingly.

23. Winding up and dissolution of Orient Airways Ltd.^___ (1) The said Company shall be wound up voluntarily of in accordance with the provisions of the Companies Act, 1913 (VII of 1913), relating to members voluntarily winding up:

(a)        the winding up of the said Company shall commence on the appointed date without the passing by the said Company of any special or other resolution for winding up:---

¹ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government” (w.e.f. 28^th July, 1975).

(b)        the Directors of the said Company shall not be under any obligation to make any such statutory declaration as is required by section 207 of the Companies Act, 1913 (VII 1913); and  

(c)        the winding up of the said Company shall be conduc­ted by the Directors of the said Company in office at the appointed day who shall be deemed to be joint liquidators for the purposes of the said winding up with power to act by a majority of their number. In case of any of the joint liquidators ceasing to hold his office as joint liquidator by reason of his death, resignation or otherwise the remaining joint liquida­tors shall continue to function as joint liquidators until the winding up of the affairs of the said Com­pany is completed.

(2) For the purposes of the winding up and for any other purpose necessary for enabling it to give effect to the provisions of this Act, the said Company may after the appointed date retain temporarily for its own use such offices, books, accounts and documents and the services of such officers and servants on such terms and conditions as may be agreed between the Corporation and the said Company, or failing agreement, as may be determined by the ¹[Federal Government].

24. Valuation of assets of Orient Airways Ltd. and allot­ment of shares to the shareholders of Orient Airways Ltd.^____ (1) So soon as may be after the commencement of this Act, the ¹[Federal Government] shall through such persons and in such manner as it thinks fit, cause as expeditiously as may be a valuation of the net value of the assets of the said Company (after taking into account all the liabilities of the said Company) as on the 30th September, 1953, to be completed, and the valua­tion so made shall on being approved by the ¹[Federal Government] be notified in the official Gazette and shall be final ; and

¹ Subs. by F.A.O., 1975, Art. 2. and Table, for “Central Government” (w.e.f. 28^th July, 1975).

each shareholder of the said Company shall thereupon be entitled, subject to the provisions of section 25 to receive, in exchange for his shares in the said Company, shares in the Corporation of a value which shall be in proportion to the valuation of the total net assets of the said Company, as approved by the ¹[Federal Govern­ment] under this section, to the aggregate amount subscribed on the existing shares of the said Company.

            (2) No shareholder in the said Company shall be entitled to any other or further claim, in respect of the shares held by him in the said Company, in the winding up of the said Company or against the said Company or the Corporation.

            25. Share capital.^___ (1) The authorised share capital of the Corporation shall in the first instance be five crores of rupees.

            (2) The subscribed capital of the Corporation shall in the first instance be allotted and subscribed to as follows, that is to say,---

(a)        shares of the value of two crores and seventy‑five lakhs of rupees or of the value of the assets resulting from the investments made by the ¹[Federal Government] for the purposes of the Corporation, as on the 30th September, 1953, and assessed on the basis agreed upon between the ¹[Federal Government] and the said Company, whichever is less, shall be allotted to the ¹[Federal Government] ;

(b)        shares of the value of half a crore of rupees shall be offered to the public for subscription ; if any shares so offered are not subscribed to by the public under this clause within six months of the date when the shares are so offered, the ¹[Federal Government] shall subscribe to them ;

¹ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government” (w.e.f. 28^th July, 1975).

(c)        shares of the value of one crore of rupees or of the value of the net assets of the said Company as on 30^th September 1953, as determined by the valuation made and approved under section 24, whichever is less shall be allotted to the shareholders of the said Company in consideration of the acquisition of the undertaking of the said Company as fully paid‑up shares ¹[;]

            ²[Provided that all shares not so allotted before the commencement of the Pakistan International Airlines Corpor­ation (Amendment) Ordinance, 1962, shall, upon such commence­ment, stand allotted to, and be held by, the ³[Federal Govern­ment.].

            ⁴[(2A) If, before the expiry of a period of three years from the commencement of the aforesaid Ordinance, any person to whom a share has not already been allotted under clause (c) of sub‑section (2) applies to the Corporation for the allotment of shares to which he may be entitled under that clause, the ³[Federal Government] may, on the recommendation of the Board, and after making such enquiries as it may consider necessary, transfer to such person, out of the shares held by it under the proviso thereto the shares to which, in the opinion of the ³[Federal Government], such person is so entitled.]

            (3) The Corporation may increase its capital whenever it thinks fit with the previous sanction of the ³[Federal Government], and the ³[Federal Government] may impose such conditions as it considers necessary when sanctioning any increase.

            (4) The ³[Federal Government,] ⁵[whether by itself or together with any financial institution,

¹ Subs. by the Pakistan International Airlines Corporation (Amdt.) Ordinance, 1962 (23 of 1962), s. 2, for full stop (w.e.f. 31^st May, 1962).

² Proviso added, ibid.

³ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”. (w.e.f. 28^th July, 1975).

⁴ New Sub-section (2A) ins. by the Pakistan International Airlines Corporation (Amdt.) Ordinance, 1962 (23 of 1962), s. 2.

⁵ Ins. by the Pakistan Airlines (Amdt.) Act, 1985 (15 of 1985), s. 2.

banking company, insurance Corporation or statutory Corporation owned, managed or controlled by it,] shall not at any time hold shares of value less than 51 per cent of the value of the shares issued by the Corporation.

            (5) All transfers of the shares of the Corporation shall be subject to the provisions of this Act, and the rules made thereunder.

            26. Limited guarantee against loss. The ¹[Federal Government] shall make good any losses sustained by the Corporation during the three years next after 30^th September, 1953, but not thereafter unless otherwise deter­mined by the ¹[Federal Government].

            27. Liquidation of Corporation. No provision of law relating to the winding up of companies or corporations shall apply to the Corporation and the Corporation shall not be wound up save by order of the ¹[Federal Government] and in such manner as the ¹[Federal Government] may direct.

            28. Provisions relating income-tax and Super-tax. For purposes of the ²[Income-tax Ordinance, 1979 (XXXI of 1979)] the Corporation shall be deemed to be a company within the meaning of that Act, and shall be liable to income-tax and super-tax accordingly on its income, profits and gains.

            29. Power of ¹[Federal Government] to make rules. The ¹[Federal Government] may make rules ³ not inconsistent with this Act for the purpose of giving effect to the provisions of this Act and where the rules made under this section are inconsistent with the regulations made under the next succeeding section the rules shall prevail.

            30. Power of Board to make regulations. The Board may with the previous sanction of the ¹[Federal Government], make regulations⁴ not inconsistent with this Act to provide for all matters for which provision is necessary or expedient for the purpose of giving effect of the provisions of this Act.

¹ Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government” (w.e.f. 28^th July, 1975.)

² Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (27 of 1981), s. 2 and II Sch., for “Income Tax Act, 1922”.

³ For the Pakistan International Airlines Corporation Rules, 1958, Gaz. of Pak., 1958, Pt. III, pp. 41^___ 46.

⁴ For Regulations made under this section, see Gaz. of Pal., 1958, Pt. VII, pp. 13^___ 16.

31. Rules and regulations to be held before the legislature. All rules and regulations made under this Act shall be published in the official Gazette, and shall come into force upon such publication and shall be laid thereafter as soon as may be before the National Assembly.

32. [Repeal of Ordinance I of 1955 and XXVIII of 1955] Rep. by the Repealing and Amending Ordinance, 1965 (10 of 1965), s. 2 and Ist. Sch.

THE SCHEDULE

(See Section 19)

DECLARATION OF FIDELITY AND SECRECY

            I, ………………………………. Hereby declare that I will faithfully, truly and to the best of my judgment, skill and ability, execute and perform the duties required of me as a Director, officer, employee or auditor (as the case may be) of the Pakistan International Airlines Corporation, and which properly relate to any office or position in the said Corporation held by me.

            I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the Corporation nor will I allow any such person to inspect or have access to any books or documents belonging to or in the possession of the Corporation and relating to the business of the Corporation.

Signed before me

……………….                                                                            Signature ……………….

……………….                                                                            Signature ……………….

Dated….…….                                                                            Signature ……………….