Islamabad High Court (IHC) has directed the Central Depository Company Limited (CDC) to place a lien on an additional 10% bonus shares of filers and 20% of non-filers, in addition to the shares of Mari Petroleum Company Limited (MPCL), according to the company’s filing at the Pakistan Stock Exchange (PSX) on Wednesday.Â
The company said that this order is to facilitate the full recovery of tax under the Income Tax Ordinance, 2001.Â
Upon full recovery of the withholding tax, either received through payment by the respective shareholder (s) or through the sale of the withheld bonus shares, the balance shares shall be immediately released to the shareholders.  Â
MPCL requested its shareholders to deposit their respective tax amount by October 15, 2024.Â
Earlier, on September 30, MPCL said in a notice to the PSX that the 800% bonus issue approved by the shareholders at the Annual General Meeting held on September 24, 2024, had been dispatched/credited to both physical and CDC shareholders of the company on September 27, 2024.
These shares were dispatched/credited after withholding 10% (for filers) and 20% (for non-filers) of the bonus shares as per the provisions of the Income Tax Ordinance, 2001 to cover the withholding tax liability on bonus shares based on the day-end price on the first day of the book closure.Â
The shareholders were requested to pay the withheld income tax to the company, failing which will enable the company to dispose of the withheld bonus shares to recover the withholding tax liability on behalf of the shareholders. Â
However, post-issuance of the shares, variation in the market price was observed that may not fully enable the company to recover full withholding tax through sale of the withheld bonus shares, for such shareholders who do not remit money to the Company. Â
In order to resolve the subject matter and in the best interest of the company, legal backing is obtained through filing a petition with the Islamabad High Court (IHC).Â
