Islamabad : Like other trade bodies , Pakistan Sugar Mills Association (PSMA) elected its office bearers in November last year for 2025-27 and the result of the elections were submitted with Security Exchange Commission of Pakistan (SECP) and Director General Trade Organisations (DGTO) of the ministry of Commerce for future fuctioning. PSMA , being a large industrial units’ representative body, had gained a prestigious status among other trade bodies and Its voice was heard in the power corridors also . One of many other reasons, unity among PSMA members had made it the most influential trade body of Pakistan. After five decades’ smooth journey , PSMA fell to a deep-rooted conspiracy in last quarter of 2024 . Those who hatched the conspiracy were not outsiders rather its own members. The architect of the conspiracy selected PSMA 2025 elections to grind their axe.
As per rotation formula, PSMA was to elect its chairman from Khyber Pukhtunkhaw (KPK) for 2025-27 . Everything was normal and the process for elections 2025 of the chairman for centre and provinces was held as per schedule. After completion of legitimate procedure, PSMA elected Mr Abbas Sarfraz Khan as central chairman for 2025-27. The elections for regional office bearers were also held as per schedule.
At this stage, a gang of sugar millers led by Chaudyary Zaka Ashraf and comprising some other like-minded conspirators , sprang into action. The gang in the first step, used retired PSMA executive committee to make PSMA’s legitimate elections controversial . The gang brought in an unlawful and retied executive body to block functioning of elected body of PSMA. The gang also used a sacked secretary to illegally occupy central office of PSMA. This drama is going on unabated for around one year . To a surprise to those who believe in the rule of law, Illegal PSMA body is having meetings with the government functionaries and legally elected body of PSMA is struggling to prove that the elections of Mr Abbas Sarfraz Khan and other office bearers for PSMA office bearers for 2025-27 were legal. Even after one full year, legally elected body headed by Mr Abbas Sarfraz Khan is yet to get justice from SECP and DGTO in this case .
Source said PSMA elected body had an emergent meeting to take stock of the situation arising out of denial being made to KPK for having its representation as PSMA chairman for 2025-27. The meeting was held in the last week of last month at Premier Sugar Mills & Distillery Limited in Mardan.
The meeting welcomed all members, expressed gratitude for their continued support, and acknowledged their valuable suggestions and comments.
The agenda items for the meeting included;
1. Denial of Chairmanship to PSMA Khyber Pakhtunkhwa Region under the Rotation System as per the Approved Articles of Association by DGTO & SECP.
The Chairman briefed the members that the Khyber Pakhtunkhwa province has its own Sugar Cane Act and its own Cane Commissioner, and therefore functions under a separate administrative structure. In view of this, the PSMA Khyber Pakhtunkhwa Region shall pursue all legal remedies available before the competent forums of the country to contest the denial of its rotational right to Chairmanship, which has been in practice for the past 50 years.
The members unanimously endorsed the Chairman’s position.
2. Discussion and Approval of Resolution Against Amendments to the Memorandum & Articles of Association (M&AOA) by the Illegitimate Executive Committee
The Chairman apprised the members of unauthorized changes being made to the M&AOA by an Executive Committee that is not duly constituted and by a Secretary General whose employment itself stands terminated. Such individuals have no legal authority to propose or approve amendments to the Articles of Association.
The members resolved to formally notify the Director General (Regulator) and the Registrar, SECP. It was further resolved that the Khyber Pakhtunkhwa Region will oppose these unlawful amendments at all costs and will file a case before the competent Corporate Court.
It was reaffirmed that any amendments to the Association’s governing documents must be made only with the consent of all three regional bodies of the Association.
3. Resolution Against Approval of Qualified Audited Accounts for the Year Ended June 30, 2024
The members questioned the legitimacy of approving a qualified audit report when both the Executive Committee and the Secretary General lack legal authority. Any such approval is therefore invalid and without legal effect.
4. Exploration of Registration of PSMA Khyber Pakhtunkhwa Region as an Independent Association with DGTO and SECP, or Alternatively, Formation of a New Sugar Association. 5. Seeking Permission from DGTO and SECP to Operate the Association’s Bank Account . All members agreed to write to the DG (Regulator) seeking formal clarification and permission regarding operation of the bank account for payment of employee salaries. Alternatively, members also proposed that employee salaries may be temporarily disbursed directly by sugar mills from their membership fee contributions. 6. Approval of Minutes of the 59th Annual General Meeting (AGM)
The members noted that meeting minutes constitute the official record of proceedings and decisions, and therefore must contain an accurate and fair summary. Approving incomplete or inaccurate minutes would constitute a violation of statutory requirements.
The Companies Act, 2017 prescribes penalties-including substantial fines-against the company and its officers (such as the Company Secretary or Directors) for non-compliance. Furthermore, incomplete or defective minutes weaken the Association’s legal position in any dispute concerning corporate actions.
It was emphasized that an illegitimate Executive Committee has no legal authority to approve AGM minutes or undertake any official business. Any actions or decisions taken by individuals who are not duly authorized or elected are null and void, or at the very least voidable, due to absence of lawful authority. In summary, all such actions shall be treated as null and void.