Company law

Company law, the current 33 years old out mode, Companies Ordinance 1984 was perhaps the worst piece of legislation. But thankfully it is replaced with Companies Act 2017, a statute that is far better, simpler, and modern. The three broad changes made in Companies Act can be sum up as follows By replacing vagueness with clarity, even specifying three slabs of penalties for each day’s default. The SECP’s discretionary power will stand reduced, not increased.

Making Easier Way

We have made every effort to make it easier for corporate managers to conduct their affairs as efficiently as possible, such as holding board and general meetings in the easiest and fastest way possible, making mergers and deregistration of defunct companies easy, and so on.

Responsibilities And Powers

The new Act provides SECP with entirely new sets of responsibilities and powers, such as certifying the whole sharia sector. In the real estate sector, approving mergers, offering mediation, and conciliation services for disputes between shareholders and companies. Collecting and maintaining a record of the ‘global interest’ of Pakistani directors and significant shareholders of Pakistani companies. And compelling large companies to fulfil their social responsibility such as inducting female directors and employing disabled persons

Panama Change

The Panama Change is a new requirement for companies to disclose their global ownership. This is a big change for many companies, and it will have a significant impact on how they operate. The Panama Change will require companies to disclose their ultimate beneficial owners to the government. This information will be public, and it will be available to anyone who wants to see itThe Panama Change is a major change for companies, and it will have a major impact on how they operate. Companies will need to disclose their ultimate beneficial owners to the government, and this information will be public. This is a big change for many companies, and it will have a significant impact on how they operate. Under the Proposed Act, ‘every substantial shareholder’ or ‘officer’ of a Pakistani company, who is a citizen or a dual citizen of Pakistan, whether residing in Pakistan or not, shall have to report to his company any of his ‘shareholding in a foreign company or body corporate’ or ‘any other interest’ as may be notified by the Commission.

Cinque Terre

pon adoption of the Propose Act, such information shall have to be report to the company and the company shall have to report it to the registrar through a special return, all within 60 days

Requirement to Prevent Money Laundering

The Proposed Act casts a duty on ‘every officer’ of a company law to ‘Endeavour to prevent’ the commission of offences of money-laundering as provided in the Anti-Money Laundering Act, 2010 ‘with respect to affairs of the company’. Sufficient measures for this reason will also be need to be put in place.

Real Estate Sector

According to the Proposed Act, all companies that launch estate projects and invite advances from the public for such projects must obtain approvals and permissions from SECP at each of the following stages of development: Before announcing any real estate project. Before making any publication or advertisement for a real estate project. And before inviting anyone to purchase land, an apartment, or building

Sharia Compliance

After adoption of the Propose Act, no company law shall be entitle to claim that it is Sharia compliant and no security, listed or not, can be say to be Sharia compliant, unless it has been declare in such form and manner as may be specified by the SECP.

Inactive Companies

The SECP has issued a new Proposed Act that requires all inactive companies to be registered with the Commission. Any company that is already inactive or that is formed for a future project or to hold an asset or intellectual property and that has no significant accounting transaction, may apply to the registrar to get the formal status of an ‘inactive company’. Throughout the time period that a company has the status of an ‘inactive company,’ it shall be subject to a lower level of filing and regulation. This act will help reduce the amount of time and resources spent on regulating companies that are not actively conducting business. It will also provide a streamlined process for companies that wish to become inactive so that they can continue to hold assets or property without having to maintain active status.

Easy exit of a defunct company

The Proposed Act, under the very heading of ‘Easy Exit of Defunct Company law’, provides a simple and straightforward solution for companies that have gone defunct. All that a company has to do is to apply, in the prescribed form, to the Registrar requesting its dissolution. The Registrar will publish a notice in the official Gazette and 90 days later, he will dissolve that company by striking off its name from the register of companies. This process is much simpler and quicker than the current process, which can be quite lengthy and complicated.

Lahore Office

Main Boulevard Gulberg, Main Market, Lahore, Punjab 54000
Mr. Ahmed Burhan

Faisalabad Office

Burhan Center, 97-99, Gulistan Market Railway Road, Faislabad, Pakistan
Mr. Ahmed Burhan

UK Office

Associate Office (London)
Mr. Ahmed Burhan