20000102

FCCCL, GCP to be merged with NFC

RECORDER REPORT

ISLAMABAD: The government has decided to merge the Federal Chemical and Ceramics Corporation Private Limited (FCCCL) and Ghee Corporation of Pakistan (GCP) with National Fertilizer Corporation (NFC) in order to give effect to government's policy of right-sizing and bringing about economy.

According to Ministry of Industries and Production sources, the independent functioning of the first named two corporation have become redundant and uneconomical, because most of their operating units have been privatised.

Both these corporations will cease to exist as separate administrative entities and the members of the board of directors of NFC will replace all the existing members of boards of directors of FCCCL and GCP. Necessary steps to execute this transfer in a orderly manner would be taken from January 8, 2000.

The industrial units and research and development centres, currently under the administrative control of FCCCL and GCP will work under the administrative control of NFC from January 8,2000.

These units are already on the privatisation list of the ministry of industries, and the Privatisation Commission will work to expedite their privatisation, officials in the ministry of industries said.

The legal merger of FCCCL and GCP with NFC, in accordance with the relevant provisions of the Companies Ordinance, 1984, will take place on the basis of audited accounts as on June 30, 1999.

The respective boards of directors have been asked to take all necessary steps and pass such resolutions which are required under the law for the implementation of legal merger of these corporations. The merger of the two corporations with NFC will be effective from January 8, 2000.

The government has also constituted a task force, headed by the chief of Experts Advisory Cell, Ministry of Industries to work out overall administrative, legal and financial details of the merger and furnish its recommendations by January 31, 2000.