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The Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970

( Ordinance NO. V OF 1970 )

Chapter IV

FUNCTIONS AND POWERS OF THE AUTHORITY

Orders of the Authority
12. (1) An order of the Authority under section 11 may,-
 
 
 
 
(a) in the case of undue concentration of economic power-
 
 
 
 
(i) require the firms or companies concerned, not being public limited companies, to be converted, within such time and in such manner as may be specified in the order, into public limited companies;
 
 
 
 
(ii) require the controlling shareholders of the public limited companies concerned to offer such part of the stocks and shares held by them within such time and in such manner as may be specified in the order to the general public, including 1[* * *] an investment institution established or controlled by Government;
 
 
 
 
(iii) prescribe the circumstances in which and the conditions on which the associated undertakings concerned may deal with each other;
 
 
 
 
(b) in the case of unreasonable monopoly power,-
 
 
 
 
(i) require the person or undertaking concerned to divest himself or itself of the ownership of any stock or shares or other beneficial interest in any undertaking or of any assets within such time and under such conditions as may be specified in the order;
 
 
 
 
(ii) require the person concerned to divest himself of any position held by him as an officer, director or partner in any undertaking within such time and under such conditions as may be specified in the order;
 
 
 
 
(iii) require the person or undertaking concerned to divest himself or itself of the management or control of any undertaking within such time and under such conditions as may be specified in the order;
 
 
(iv) prohibit the person or undertaking concerned from acquiring the stock or assets of, or the undertaking from merging with, any other undertaking;
 
 
 
 
(v) limit the total loans which may be made by any bank or insurance company to any single individual or undertaking, or to any undertaking associated with such bank or insurance company;
 
 
 
 
(vi) limit the investments of any undertaking engaged in the banking, investment or insurance business;
 
 
 
 
(vii) require the person or undertaking concerned to take such actions specified in the order as may be necessary to restore competitive prices and eliminate restrictions on output or entry of competitors in the market;
 
 
 
 
(c) in the case of unreasonably restrictive trade practices,-
 
 
 
 
(i) require the person or undertaking concerned to discontinue or not to repeat any restrictive trade practice and to terminate or modify any agreement relating thereto in such manner as may be specified in the order;
 
 
 
 
(ii) require the person or undertaking concerned to take such actions specified in the order as may be necessary to restore competition in the production, distribution or sale of any goods or provision of any services.
 
 
 
 
(2) An order referred to in sub-clause (ii) of clause (a) of sub-section (1) or sub-clause (i) of clause (b) of that sub-section shall not be so made as to require the offer of the stocks or shares at a price below their face value or at a price below the aggregate of such value and fifty per cent of the difference between such value and the net worth of the stocks or shares as may be determined in accordance with the rules made in this behalf, which ever is greater.
 
 
 
 
(3) Where any stocks or shares have been offered in pursuance of an order referred to in sub-section (2), no fresh order of such nature shall be made in respect of the same person or undertaking within a period of three years from the date of such order whether or not the stocks or shares offered have actually been subscribed.

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Ministry of Law, Justice and Parliamentary Affairs