TRG Pakistan Barred From Holding Board Elections Once Again

TRG Pakistan Limited’s (PSX: TRG) board elections have been halted once again. So far, shareholders have managed to convince courts in Islamabad, Lahore, and Karachi to issue stay orders against the selection of a new Board of Directors. “TRG Pakistan Limited has received a copy of a certified order regarding the filing of a suit by a shareholder of the Company before the Civil Judge in Islamabad seeking inter alia, an injunction and restraining order against the Company in respect of conducting elections of its Board of Directors,” the company said in a stock filing on Monday. TRG explained that a Civil Judge in Islamabad granted an ad-interim injunction on February 11, 2025, restraining the company from conducting board elections until the next hearing. This follows similar lawsuits filed by two shareholders in Lahore, where former CEO Zia Chishti also joined proceedings and obtained a stay from the Lahore High Court. The company’s largest shareholder, Greentree Holdings Limited, has intervened in these cases and separately filed a suit in the Sindh High Court in January 2025 to delay the elections. Also, the Sindh High Court issued an ad-interim order on February 12, 2025, to block Chishti and his spouse from selling or transferring their TRG Pakistan shares. This ruling stems from a US arbitration case on January 27, 2025, which found that Chishti’s pledged shares—used as collateral for a loan from JS Bank—violated contractual obligations. Additionally, on January 28, 2025, Chishti filed a motion in a US arbitration case, seeking to block Greentree Holdings Limited from proceeding with its tender offer while pushing for an accelerated board election. “In each of the matters where the Company is a defendant, it plans to appear through its counsel, and will provide further update(s) when applicable,” the company added.