MARKETING OF PETROLEUM PRODUCTS (FEDERAL CONTROL) (REPEAL) ORDINANCE, 2002 ORDINANCE LXXXIX OF 2002
MARKETING OF PETROLEUM PRODUCTS (FEDERAL CONTROL) (REPEAL) ORDINANCE, 2002 ORDINANCE LXXXIX OF 2002 The Marketing of Petroleum Products (Federal Control) (Repeal) Ordinance, 2002, Ordinance LXXXIX of 2002, is a legislative instrument in Pakistan that repeals the Marketing of Petroleum Products (Federal Control) Ordinance, 2001. Ordinances are temporary laws promulgated by the President of Pakistan when the Parliament is not in session, and they have the force of law until they are passed by the Parliament.An Ordinance to repeal the Marketing of Petroleum Product (Federal Control) Act 1974 WHEREAS it is expedient to repeal the Marketing of Petroleum Products (Federal Control) Act, 1974 (XVII of 1974), and to provide for matters connected therewith or incidental thereto: AND WHEREAS development of the oil marketing sector under Federal Government control is no longer viewed as necessary in the public interest and circumstances render it more favourable for development to be undertaken by the private sector; AND WHEREAS Pakistan State Oil Company Limited is the only oil marketing; company in respect of which an Order has been issued under the aforesaid Act and to which that Act currently applies; AND WHEREAS the Federal Government is in the process of deregulating the downstream oil sector and in encouraging private investment in this sector as well as privatising certain of its own interests in the downstream oil sector ncluding by way of divestment of its shares in Pakistan State Oil Company Limited. AND WHEREAS the President is satisfied that circumstances exist which render it necessary to take immediate action; NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the Fourteenth day of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional Constitution (Amendment) Order No.9 of 1999, and in exercise of all powers enabling him in that behalf, the President of the Islamic Republic of Pakistan is pleased to make and promulgate the following Ordinance: Short title, extent and commencement.___(1) This Ordinance may be called the Marketing of Petroleum Products (Federal Control) (Repeal) Ordinance, 2002. (2) It extends to the whole of Pakistan. (3) It shall come into force at once except sections 3 to 7 which shall come into force upon the occurrence of the effective date. Definitions.___In this Ordinance, unless there is anything repugnant in the subject or context,- (a) “Act” means the Marketing of Petroleum Products (Federal Control) Act, 1974 (XVII of 1974); (b) “Board” means the Board of Management or the Board of Directors, as the case may be: (c) “Board of Directors” means the Board of PSO reconstituted as a board of directors pursuant to section 4 of this Ordinance; (d) “Board of Management” means a Board of Management set up under section 7 of the Act; (e) “Chief Executive” has the same meaning as in the Companies Ordinance; (f) “Companies Ordinance” means the Companies Ordinance, 1984 (XLVII of 1984); (g) “Director” has the same meaning as in the Companies Ordinance; (h) “effective date” means the date as may be appointed by the Federal Government in the Official Gazette for the purposes of subsection (2) of section 3: (i) “marketing company” has the same meaning as in the Act; (j) “Order” means the order issued pursuant to section 5 of the Act for the take over of the management of PSO contained in statutory notification S. R. O. No. 100 (I)/77 dated 31st January, 1977; (k) “PSO” means the Pakistan State Oil Company Limited: (l) “Managing Director” means the person appointed to act as Managing Director of PSO by the Federal Government pursuant to the Act; (m) “Monopolies Ordnance” means the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970 (VI of 1970); and (n) “Privatisation” has the same meaning as in the Privatisation Commission Ordinance, 2000 (LII of 2000) Repeal and rescission.___(1) The Act shall stand repealed on the occurrence of the effective date and the Order shall stand rescinded concurrently therewith. (2) For the purposes of this Ordinance, the effective date shall be the date of transfer of all the shares in PSO as are owned by the Federal Government to one or more private sector investors pursuant to a “privatisation” effected under and pursuant to the Privatisation Commission Ordinance, 2000 (XLII of 2000) and any rules made (sic). Explanation.___For the purposes of this section the expression “transfer” means the registration of the transfer of the shares as contemplated above in the register of members of the PSO. Consequences of repeal on PSO. ___ Immediately upon the repeal of the Act on the effective date and notwithstanding anything contained in any other law for the time being in force___ (a) the Board of Management of PSO shall be immediately and automatically reconstituted as a Board of Directors with the same number of directors (including the chief executive) who shall all be deemed to have been elected as directors of PSO under and pursuant to the terms of section 178 of the Companies Ordinance and PSO’s own Articles of Association and to have fulfilled all requisite procedural and notification requirements: Provided that the term of office of such reconstituted Board shall be only until an election of directors is held as provided in section 6: Provided further that there shall be no need for the directors on the reconstituted Board of Directors to file consents under section 184 of the Companies Ordinance to act as directors of PSO until fifteen days after the Board has been reconstituted or their appointment takes effect: Provided also that in case of any conflict between the Articles of Association of PSO and this Ordinance, the provisions of this Ordinance shall prevail. (b) PSO shall cease to be a “managed company” under the Act and all powers of the Federal Government under the Act shall cease including any power to manage PSO or to appoint any Managing Director or other chief executive officer for PSO. The Managing Director and other members of any Board of Management (including the Chairman of the Board of Management) shall