Memorandum of Association
Registered Office
Objects
Liability
Share Capital
  PART IX

THE COMPANIES ORDINANCE, 1984
(Company Limited By Shares)

MEMORANDUM OF ASSOCIATION

OF

SOUTHERN ELECTRIC POWER COMPANY LIMITED
                                       
The name of the Company is Southern Electric Power Company Limited

II.

REGISTERED
 
  OFFICE The registered office of the Company will be situated in the Islamabad
    Capital Territory.

III.

OBJECTS

The objects for which the Company is established are to undertake any or
    all of the listed following:
 

(1)

To carry on the business of establishing and operating and managing
    Electric Power Generating Projects and transmission systems for
generating and supplying Electric Power and to manufacture, assemble,
acquire and supply all necessary power stations, transmission systems,
cables, wires, lines, accumulators, lamps and works and to generate,
accumulate, distribute and supply electricity to customers, both public and
private, including but not limited to cities, towns, streets, docks, markets
theaters, buildings, industries, utilities and places, both public and private,
and for all other purposes for which electric energy can be employed.
 

(2)

To purchase, acquire, hire, take on lease, build, erect, install, establish, operate,
 
use, repair, enlarge, alter, maintain and dispose of factories, machineries, plants,
laboratories, equipments, processing, refining, storage, sale and distribution of the
products in which the Company is authorized to deal.
 

(3)

To purchase, take on lease or in exchange, or otherwise acquire, any land to sell,
 
mortgage, to construct, alter, repair pull down, decorate, maintain, furnish,
renovate and improve buildings, and enter into contracts and arrangements of all
kinds with builders property owners, and others.
 

(4)

To purchase, acquire, take on lease or tenancy, sell, dispose of mortgage
 
and acquire options over any property, immovable or movable, or rights of
any kind, and develop, improve, turn to account, deal with, mortgage, sell or
otherwise dispose of the same in such manner as may be thought
expedient.
 

(5)

To enter into an agreement or any arrangement for sharing profits, union of
 
interest, co-operation, joint-ventures, reciprocal concessions, or otherwise
with any individual, firm co-operative or other society, company, association,
corporate body, Government or local authority or other legal entity
necessary or expedient for the purpose of carrying on any business of the
Company.
 

(6)

To open, close and operate banking accounts of the Company with any
 
bank or banks and to draw, make, accept, endorse, discount, execute and
issue promissory notes, bills of exchange, bills of lading, warrants,
debentures and other negotiable or transferable instruments.
 

(7)

To receive money on loan, borrow money and secure payment of money in
 
such manner as the Company shall think fit, and in particular by (i) the
issue of perpetual or redeemable and convertible or non-convertible PTSs,
TFCs, debentures, or debenture stock (perpetual or otherwise), bonds,
promissory notes, bills of exchange, and such other securities; (ii)
furnishing undertakings and guaranteeing the performance by the Company
or any other person or company of any obligation undertaken by the
Company or any other persons or company as the case may be, depositing
securities, shares and documents of title; (iii) hypothecating, charging and
mortgaging all or any of the properties and assets (both present and future)
of the Company and creating pledge on such properties; and (iv) appointing
attorneys, and giving them powers and authority for executing documents,
registering documents, selling and managing the properties, under- taking
any business of the Company and furnishing and creating such other
securities as may be considered expedient; and for the purposes aforesaid,
or otherwise, execute, complete and deliver agreements and such other
documents as may be required.
 

(8)

To guarantee the payment of money and the performance of contracts of
 
engagements of the Company and to secure the payment of money and the
performance of any contracts or engagements entered into by the Company
and to discharge any debt or any obligations of or binding upon the
Company by a mortgage or charge upon all or any part of the undertaking,
property and rights of the Company (either present or future or both), or by
the creation or issue of bonds, debenture stocks, or any other securities or
by any other means.
 

(9)

To guarantee the payment of money unsecurred or secured by or payable
 
under or in respect of promissory notes, bonds, debentures, debenture
stock (perpetual or otherwise), contracts, mortgages, charges, obligations,
instruments and securities of the Company and generally to guarantee or
become sureties for the performance of any contracts or obligations
concerning the business of this Company.
 

(10)

To draw, make, accept, endorse, seal, execute, negotiate, purchase hold
 
and dispose of cheques, promissory notes, bills of exchange, drafts, charter
parties, bills of lading, warrants and other negotiable documents and
contracts, deeds and other instruments and to cancel and vary such
instruments, relating to the business of the Company.
 
(11)

To apply for, purchase, or otherwise acquire, and protect and renew in any
 
part of the world any patents, patent rights, brevets d'invention trade marks,
designs, licenses, concessions, and the like, conferring any exclusive or
non-exclusive or limited right to their use, or any secret or other information
as to any invention which may seem capable of being used for any of the
purposes of the Company, or the acquisition of which may seem calculated
directly or indirectly to benefit the Company, and to use, exercise, develop
or grant licenses in respect of, or otherwise turn to account the property,
rights or information so acquired, and to expend money in experimenting
upon, testing or improving any such patents, inventions or rights; and to sell
any patent rights or privileges belonging to the Company or which may be
acquired by it, or any interest in the same, and to grant licenses for the use
and practice of the same or any of them and to let or allow to be used or
otherwise deal with any inventions, patents or privileges in which the
Company may be interested, and to do all such acts and things as may be
deemed expedient for turning to account any inventions, patents and
privileges in which the Company may be interested.
 

(12)

To employ and remunerate Directors, officials, agents, employees and
 
servants of the Company and any person, firm or body corporate rendering
services to the Company either by cash payment or by allotment to him or
her or them, as the case may be, of shares or securities of the Company,
and to benefit employees of the Company, and to grant pension, gratuities
and allowances and to pro- vide houses, amenities and conveniences of all
kinds and for the purpose of this paragraph the words "employees" and "ex-
employees" shall include respectively, present ad former Directors and other
officials, agents, employees, trainees and servants.
 

(13)

To improve develop, sell, exchange, take on lease, mortgage pledge,
 
hypothecate, assign, transfer, dispose of, turn to account or otherwise deal
with all or any part of the present and future property and assets, immovable
and movable corporeal or incorporeal, tangible or intangible, and any right,
title and interest therein of the Company, including rights, licenses
privileges, concessions and franchises as may seem expedient.
 

(14)

To payout of the funds of the Company all expenses of and incidental to the
 
formation, registration, advertisement of the Company and the issue and
subscription of the share or loan capital including brokerage and/or
commission for obtaining applications for or placing or guaranteeing the
placing of shares or any debentures, debenture-stock and other securities of
this Company and also all expenses relating to the issue of any circular or
notice and the printing, stamping, and circulating of proxies and forms to be
filled up by the members of the Company.
 

(15)

To pay for rights or property acquired by the Company and to remunerate
 
any person or company whether by cash payment or by the allotment of
shares, debentures or other securities of the Company as fully paid up.
 

(16)

To adopt such means of making known the business, services and products
 
of the Company as may seem expedient and in particular by undertaking
seminars, training and demonstration programs and by advertising in the
press, by circulars and by purchase and exhibition of works of art or
interests, by publication of books and periodicals and by granting prizes,
rewards and donations.
 

(17)

To promote constitute, incorporate, form, register and operate any company
 
or companies or other legal entities anywhere for any purpose which may
seem directly or indirectly calculated to benefit this Company, and/or to
subscribe for, take, or otherwise acquire, and hold shares, debentures or
other securities of or amalgamate or merge, into any other company having
objects altogether or in part similar to those of this Company or carrying on
any business capable of being conducted so as to directly or indirectly
benefit this Company.
 
 
 
(18)
To establish and maintain or procure the establishment and maintenance of
 
any contributory or non-contributory pension or superannuation funds for the
benefit of, and give or procure the giving of donations gratuities, pensions,
allowances or emoluments to any persons who are or were at any time in
the employment or service of the Company, or of any company which is a
subsidiary of the Company or is allied to or associated with the Company or
with any such subsidiary company, or who are or were at any time in the
employment or service of the Company, or of any company which is a
subsidiary of the Company or is allied to or associated with the Company or
with any such subsidiary company, or who are or were at any time Directors
or officers of the Company or of any such other company as aforesaid, and
the wives, widows families and dependents of any such persons, and also
to establish and subsidize and subscribe to any institutions, associations,
clubs or funds calculated to be for the benefit of or to advance the interests
and well-being of the Company or of any such other company as aforesaid,
and make payments to or towards the insurance of any such person as
aforesaid and do any of the matters aforesaid, either alone or in conjunction
with any such other company as aforesaid.
 

(19)

To open branches, register the Company and to undertake all or any of the
 
business of the Company in any part of the world and to become a member
of various associations and trade bodies whether in Pakistan or abroad.
 

(20)

To apply for and obtain necessary consents, permissions and licenses from
 
any Government, State, Local and other authorities for enabling the
Company to carry any of its objects into effect or for extending any of the
powers of the Company or for effecting any modification of the constitution
of the Company or for effecting any modification of the constitution of the
Company or for any other purpose which may seem expedient, and to
oppose any proceedings or applications which may seem calculated,
directly or indirectly to prejudice the interests of the Company, and to enter
into arrangements with any Government or authorities, central, provincial,
municipal, local or otherwise, public or quasipublic bodies, or with any
other persons, in any place where the Company may have interests that
may seem conducive to the objects of the Company or any of them and to
obtain from any such Government, authorities or persons, any rights,
privileges and concessions which the Company may think fit to obtain, and
to carry out, exercise and comply therewith.
 

(21)

To carry on all or any of the business of importers exporters, shipowners,
 
shipbuilders, caterers of ships and other vessels warehousemen,
wharfingers, merchants, ship and insurance brokers, carriers and forwarding
agents.
 

(22)

To insure the property, assets, and employees of the Company in any
 
manner deemed fit by the Company, and to create any reserve fund, sinking
fund, insurance fund or any other special fund whether for depreciation or for
repairing, insuring, improving, extending or maintaining any of the property of
the Company or for any other purpose conducive to the interests of the
Company.
 

(23)

To invest the surplus moneys of the Company not immediately required in
 
any manner but not to act as an investment company.
 

(24)

To advance money or give credit to such persons or companies and on such
 
terms as may seem expedient, and in particular to customers and others
having dealings with the Company.
 

(25)

To import, export, buy, sell, own, install, and/or rent machinery and other
 
equipment goods, materials and spare parts required for or in connection
with the business of the Company.
 

(26)

To carryon any other business, whether agricultural, industrial, commercial,
 
engineering, consultancy, construction, mining, manufacturing or trading
which may seem to the Company capable of being conveniently carried on
in connection with the above, calculated directly or indirectly to enhance the
value of or render profitable any of the Company's property or rights and to
acquire and undertake the whole or any part of the business, property, and
liabilities of any person or company carrying on or proposing to carryon any
business which the Company is authorized to carryon, or possessed of
property suitable for the purposes of the Company, or which can be carried
on in conjunction therewith or which is capable of being conducted so as
directly or indirectly to benefit the Company.
 

(27)

To enter into partnership or other joint venture or co-operation with any
 
person or company or other legal entity, local or foreign, carrying on or
engaged in any business or transaction which this Company is authorized
to carryon or engage in, or otherwise assist and such person or company or
legal entity.
 

(28)

To receive, declare and distribute profits and to capitalize such portion of the
 
profits of the Company as are not distributed among shareholders of the
Company in the form of dividends, and as the Company may think fit, and to
issue bonus shares, as fully paid up, in favour of the shareholders of the
Company.
 

(29)

To file or register any documents required to be filed or registered under law,
 
and to pay any fees, charges, expenses, rents, taxes, duties and other
dues payable in connection with the business or operation of the Company.
 

(30)

To make rules or regulations not inconsistent with this Memorandum, to
 
provide for all matters for which provision is necessary or expedient for the
purpose of giving effect to the provisions of this Memorandum and the
efficient conduct of the affairs of the Company.
 

(31)

To improve, manage, develop, grant rights or privileges in respect of, or
 
otherwise deal with, all or any part of the property and rights of the
Company and to establish laboratories, research and development centers
to perform such research and development as the Company may deem
advisable or feasible, and to expend money on experimenting upon and
testing and improving or securing any process, or processes, patent or
protecting any invention or inventions which the Company may acquire or
propose to acquire or deal with.
 

(32)

To accept, buy, sell, market, supply, transfer (including transfer of
 
actionable claims) or deliver any and every kind of moveable property for
such price and subject to such terms, conditions and warranties as the
Company may think fit.
 

(33)

To sell improve, manage, develop exchange, lease, mortgage, enfranchise,
 
dispose of, turn to account, or otherwise deal with, all or any part of the
property, assets or undertaking of the Company for such consideration as
the Company may think fit, and in particular for shares, debentures, or other
securities of any other company whether or not having objects altogether or
in part similar to those of this Company, and to distribute among the
members in specie any property of the Company.
 

(34)

To accept or give security, including but not limited to promissory notes,
 
indemnity bonds guarantees assignments, receipts, bailments, pledges,
hypothecations, liens, mortgages and charges, against the credit extended
or moneys borrowed in connection with the business of the Company.
 

(35)

To settle disputes by negotiation, conciliation, mediation arbitration,
 
litigation or other means and to enter into compromise with creditors,
members and any other persons in respect of any difference or dispute with
them.
 

(36)

To develop and/or transfer technology and to acquire or pass on technical
 
know-how.
 

(37)

To train personnel and workers, both in Pakistan and abroad, to obtain
 
technical proficiency in various specialties connected with the business of
the Company.
 

(38)

To carryon the business of common carriers of goods and passengers by
 
road, rail, air, or water and also to carryon the business of designers,
manufacturers, buyers, sellers, hirers, renters, agents, dealers, distributors,
repairers, exporters, importers, owners, and charterers of road vehicles,
aircraft and ships, and to engage in any business of communication.
 

(39)

To vest any real or personal property, rights or interests acquired by or
 
belonging to the Company in any person or company on behalf of or for the
benefit of the Company, and with or without any declared trust in favour of
the Company, and to undertake and execute any trust the undertaking
whereof may seem desirable, and either gratuitously or otherwise.
 

(40)

To underwrite the shares or securities of any other company and to pay
 
underwriting commission and brokerage on any shares or securities issue
by the Company.
 

(41)

To aidpecuniarily or otherwise, any association, body or movement having
 
for an object the solution, settlement, or surmounting of industrial or labor
problems or troubles or the promotion of industry or trade.
 

(42)

To distribute among the Members in specie any property of the Company,
 
or any proceeds of sale or disposal of any property of the Company, but so
that no distribution amounting to a reduction of capital be made except with
the sanction (if any) for the time being required by law.
 

(43)

To do all or any of the above things, either as principals, agents,
 
contractors, or otherwise and either alone or in conjunction with others, and
either by or through agents, sub-contractors, trustees, or otherwise, and
either alone or in conjunction with others, and to do all such things as may
be deemed incidental or conducive to the attainment of the objectives as
specified in Object (1) of the Object Clause III.
 

(44)

The Company shall not engage in banking business or business of an
 
investment company, insurance or leasing or any unlawful business.

Declaration: It is hereby declared that (a) the word "company" in this clause
except where used in reference to this Company, shall be deemed to
include any partnership or other body of persons, whether corporate or
unincorporate, and whether domiciled in Pakistan or elsewhere; (b) the
objects specified in each of the paragraphs of this clause shall be regarded
as independent objects, and accordingly shall in no way be limited or
restricted (except where otherwise expressed in such paragraphs) by
reference to or inference from the terms of any other paragraph or the name
of the Company, but may be carried out in as full and ample a manner and
construed in as wide a sense as if each of the said paragraphs defined the
objects of a separate and distinct company; (c) notwithstanding anything
contained in the foregoing object clauses of this Memorandum of
Association, nothing herein shall be construed as empowering the Company
to undertake or indulge in the business of banking finance, investment or
insurance directly or indirectly, as restricted under law or any unlawful
operations.

IV.
LIABILITY:

The liability of the Members is limited.


V.
SHARE CAPITAL:
 
 
The Authorized Share Capital of the Company is Rs. 1,000,000,000
 
(Rupees One billion only) being 100,000,000 (One hundred million) Ordinary
shares of Rs. 10/- each. The Company shall have the power to increase,
reduce or reorganize the Capital of the Company, subdivide the Share
Capital of the Company, into different classes in accordance with the
provisions of the Companies Ordinance 1984.
 
 

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