Annual Report 2012 - Lahore Stock Exchange

Financial NotesFor the year ended 30 June 20121 Status and nature of businessLahore Stock Exchange (Guarantee) Limited ("the Company") was incorporated under the CompaniesAct, 1913 (now the Companies Ordinance, 1984) on 05 October 1970 as a Company limited byguarantee. The registered office of the Company is situated at 19, Khayaban-e-Aiwan-e-Iqbal, Lahore,Pakistan.The Company is engaged in conducting, regulating and controlling the trade or business of buying,selling and dealing in shares, scripts, participation term certificates, modaraba certificates, preorganizationcertificates and securities, stocks, bonds, debentures, debenture stocks, Governmentpapers, loans and any other instruments and securities of like nature including but not limited tospecial national fund bonds and documents of a similar nature issued by the Government of Pakistanor any institution or agency authorized by it.2 Significant event2.1Introduction of The Stock Exchanges (Corporatization, Demutualization andIntegration) Act, 2012The Stock Exchanges (Corporatization, Demutualization and Integration) Act, 2012 ("The Act")was approved in a Joint session of the Parliament held on 27 March 2012, which wassubsequently signed by the President of Islamic Republic of Pakistan on 07 May 2012, forcorporatization, demutualization and integration of all stock exchanges of Pakistan. Followingstages for restructuring of stock exchanges have been proposed in the Act.1) CorporatizationThe conversion from a company limited by guarantee to a public company limited byshares.2) DemutualizationThe segregation of majority ownership of the Company from right to trade on such stockexchange.3) Integration (optional)The merger of two or more stock exchanges. However, this step is optional for theCompany.2.2 Effect of corporatisationIn accordance with the Act, the corporatisation will not change the legal status of the Companyor prejudice or affect its identity or continuity or of its undertakings. All assets and liabilities ofthe Company at the date of corporatisation shall remain the assets and liabilities of theCompany. Upon the conversion of the Company from a company limited by guarantee to acompany limited by shares, the liability of each member of the Company as guarantor shall bedeemed to be extinguished immediately.As a result of corporatisation the Company has been re-registered by the registrar, subsequentto year end, as evidence of its change in status from a company limited by guarantee to a publiccompany limited by shares.100LAHORE STOCK EXCHANGE