Sui Northern Gas Unable to Hold AGM Due to Regulatory Delays

Lahore, Sui Northern Gas Pipelines Limited has announced it will be unable to convene its Annual General Meeting (AGM) by the mandated deadline of July 29, 2024, due to delays in regulatory approvals. The Oil and Gas Regulatory Authority (OGRA) has not yet issued the Final Revenue Requirement (FRR) for the fiscal year ending June 30, 2023, which is crucial for the company to finalize its financial statements.

According to information available from the Pakistan Stock Exchange (PSX), the company is under a strict directive to hold its overdue AGM and present the fiscal accounts for shareholder review as stipulated by Section 147 of the Companies Act. However, the lack of a finalized FRR has stalled these proceedings. Without the FRR, the company is unable to prepare its financial statements, rendering the holding of the AGM noncompliant with the requirements of Section 223 of the Companies Act of 2017.

Sui Northern Gas has outlined the timeline required to organize the AGM, noting that at least 55 days are needed after the FRR is issued. This time frame includes two days for final adjustments, 14 days for external audit processes, and additional periods for compiling and composing the financial statements, alongside statutory notice periods for both the Board of Directors and shareholders.

Given the current situation, Sui Northern Gas has formally requested the Commission for an exemption from the stipulations of Circular No. 07/2024, issued under Section 147, which mandates the AGM’s timing. The company argues that an exemption would prevent unnecessary administrative delays and correspondence related to show cause notices and justifications, thereby conserving national resources and efforts.

Assuming the FRR is issued imminently, the earliest feasible date for the AGM would be August 21, 2024. This adjusted timeline would allow the company to meet regulatory and statutory requirements, pending the timely issuance of the necessary FRR by OGRA.