SECP proposes amendments in Companies Rules

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) proposed amendments in the Companies Rules of 1985, to minimize the growing incidents of the corporate disputes between the shareholders and the management or even within the management.

A statement issued said that the proposed amendment has been notified in the official gazette to solicit the public opinion. The proposed amendments prescribe detailed procedure for the transfer of shareholdings in a private company.

The shareholders of a private company shall have pre-emptive rights to buy shares offered by any other shareholder. Moreover, in case of all private and public unlisted companies, the amendments also prescribe the returns for notifying transfer of shares to the registrar within 15 days from the transfer.

Regarding further allotments of shares, the proposed amendments bind the company to send out offers of new shares to the existing members at least 15 days before the last date of the acceptance. The payment of the shares, accepted by the members, shall only be made through normal banking channel.

In case of removal of directors under section 181 of the Companies Ordinance, the proposed amendments prescribe certain documents to be annexed with the prescribed ‘form 29′ to be filed with the registrar for notification of the removal. The amendments’ notification has been uploaded at the official website of the SECP for seeking public opinion.

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