Court suspends Quice EOGM oversight order

June 22, 2026 (MLN): An appellate court in Karachi has suspended a lower court's order that had placed Quice Food Industries Limited's (PSX: QUICE) Extraordinary General Meeting (EOGM) under judicial supervision, while simultaneously restraining the company from restricting minority shareholders' participation in the meeting.

The XII Additional District Judge, Karachi South, passed an order on June 18, 2026, in a case filed by Quice Food Industries Limited, Furqan Hussain, and Indus Fruit Products Limited against a trial court order issued on June 9, 2026.

The court first examined whether the matter could be heard and concluded that the challenged trial court order was subject to appellate review.

The court relied on a Supreme Court precedent Habib Bank Limited and Others vs. Syed Zia ul Hasan Kazmi which held that appellate interference in interlocutory orders is warranted where such orders are arbitrary, capricious or against well-settled propositions of law so as to obviate miscarriage of justice.

On merits, the appellate court found that the trial court had erred in appointing its Nazir to supervise the EOGM proceedings, as the Honorable High Court of Sindh had already, vide its order dated May 25, 2026 in JCM No. 30/2026, provided the mechanism and procedure for convening and conducting the statutory meeting of Quice Food.

Appointing a Nazir was therefore contrary to that High Court order. The appellate court further held that the participation of a Nazir in the EOGM of Quice Food was against the provision of law, and that minority shareholders hold a lawful right to actively participate in the EOGM scheduled for June 23, 2026.

Accordingly, paragraphs 10 to 13 of the impugned order which had appointed the Nazir, directed SECP to depute a compliance officer, and required deposit of Rs30,000 as Nazir's remuneration were suspended.

However, the restraint contained in paragraph 9 of the lower court's order was maintained, prohibiting the company, its directors, officers and agents from conducting the EOGM in any manner that precludes or restricts minority shareholders from fully and meaningfully participating, raising objections and casting their votes in accordance with their respective shareholdings.

The matter has been fixed for hearing on July 4, 2026.

This development follows an earlier intervention by a civil court on June 9, 2026, which had ordered judicial supervision of the EOGM after minority shareholders, including Khanani Securities Limited collectively holding 20.04% of Quice Food's issued share capital, challenged the proposed merger ratio of 13.66 Quice Food shares for every one share of Indus Fruit Products as extraordinarily inflated and detrimental to minority investors.

The company informed the Pakistan Stock Exchange of the appellate court's ruling through a disclosure dated June 22, 2026, adding that it would keep all stakeholders abreast of any significant updates.

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