
- Home
- Pakistan
- News
- SECP places draft of Companies Bill 2016 on website, invites public suggestions about new
SECP Places Draft Of Companies Bill 2016 On Website, Invites Public Suggestions About New
Provisions
Fahad Shabbir (@FahadShabbir) Published July 20, 2016 | 09:52 PM

ISLAMABAD, (UrduPoint / Pakistan Point News - 20th july, 2016) : The Securities and Exchange Commission of Pakistan (SECP) has posted the final draft of the Companies Bill, 2016 on its website and has formally sent the draft Bill to the Ministry of Finance for initiating necessary legislativeprocess and its passage by the Parliament.
These new concepts are being introduced to meet the international standards andrequirements. Public suggestions regarding the Bill have also been invited to be later made part of the final Companies Bill 2016, according to a statement issued here on Wednesday.
Earlier, the Chairman SECP briefed the Minister for Finance on the draft Bill who directed that provisions relating to Companies Global Register with respect to beneficial owners, duties of the officers of the company to take adequate measures to avoid fraud and money laundering, new concepts relating to free zone companies, real estate companies and agricultural promotion companies should be further deliberated with the stakeholders.
The SECP should finalize such provisions after broader consultation and consensus of the stakeholders. In order to ensure corporate transparency and facilitate meaningful due diligence, SECP proposes to maintain a Companies' Global Register of officers and beneficial owners of the companies having beneficial ownership in local or foreign companies.
The information will be reported by the company to the registrar along with the annual return of the company; however for the first time such information will be reported through a special return on a prescribed form within a stipulated time frame.
Furthermore, for prevention of fraud and money laundering every officer of thecompany shall be required to take necessary measures to prevent the commission of fraudand money laundering in the respective company.
Any failure on the part of such officer shall be an offence. The SECP also proposes to introduce provisions regarding certain specialized companies including Free Zone companies, Real Estate Companies and Agricultural Promotion Companies.
The free zone companies will cater for carrying out business in Export Processing Zones notified by the Federal Government. The introduction of free zone companies will support Pakistan's future export needs especially in the wake of CPEC which will potentially change the economic landscape of the country.
The concept of Free Zone companies is prevalent internationally and successfully attracting foreign investors and investments. At present in Pakistan, the export processing zones and free zones are notified by the Federal Government under the Export Processing Zone Authority Ordinance, 1980 and various exemptions have been granted therein.
However, the Companies Ordinance, 1984 did not cater for the concept and there was a need to provide further incentive especially to foreign nationals and entities investing in free zones.
Through the proposed provision the foreign nationals shall be exempted from disclosure requirements. Further the SECP will also be able to give concessions with respectto filing requirements under the draft Bill. Agriculture is the backbone of Pakistan economy and special purpose companies can play a positive role in alleviating the agriculture sector.
A concept of agricultural promotion company is being introduced to provide impetus and support to the rural economy and induce increase in agricultural produce and its management through facilitation of warehousing of agriculture produce, issuance of credible warehouse receipts for agricultural commodity, stock and audit verification etc.
Such companies may be established in either in the form of Producer Company or a Collateral Management Company for facilitating the agricultural sector. The companies having principle line of business of real estate projects i.e.
development and construction of residential or commercial buildings and compounds in order ensure protection of the investors will be required to take adequate measures interalia maintenance of escrow accounts and additional disclosure requirements.
Before taking advance from the general public NOC from the respective authoritiesshall be required and advertisement in print and electronic media shall be made afterfulfilling certain requirements and permission from the SECP in this respect.
It is conceived that in order to bring new real estate companies and promote the business there is an impending need to increase investor confidence intending to invest in real estate ventures. The proposed concepts besides posting on the website of the SECP, for soliciting stakeholder's opinion and feedback will be shared with the Institute of Chartered Accountants of Pakistan, the Institute of Cost and Management Accountants of Pakistan, Federation of Pakistan Chambers of Commerce and Industry, the chambers commerce and industry across Pakistan and leading corporate lawyers and consultants in the country. The decision with respect to inclusion of the proposed new concepts in the draft Companies Bill,2016 will be finalized only after taking into consideration, the feedback received from the stakeholder's and by holding a consultative session for reaching a consensus in this behalf.
Related Topics
Recent Stories

National Environment Day an occasion to preserve natural resources, says Almheir ..

US Sanctions Leadership of Iran UAV Manufacturer Over Alleged Supplies to Russia ..

Mud and glory as Van der Poel and Van Aert set for world title bout

Holding of elections in 90 days mandatory as per constitution: Asad Umar

Long-delayed ExoMars mission still dreams of 2028 launch

US Pledges Nearly $2.2Bln More in Rockets, Air Defense Systems for Ukraine - Pen ..
More Stories From Pakistan
-
Holding of elections in 90 days mandatory as per constitution: Asad Umar
4 hours ago -
Policemen directed to resolve peoples' complaints without delay
4 hours ago -
Secretary local govt reviews sanitation arrangements in city
4 hours ago -
The Election Commission of Pakistan (ECP) suspends local governments till announcement of results to ..
4 hours ago -
CDA's anti-encroachment operation in full swing
5 hours ago -
Arrangements being finalized to mark Kashmir Solidarity Day in Hyderabad
5 hours ago -
State to adopt zero tolerance against terrorism: Prime Minister Shehbaz Sharif
5 hours ago -
Sindh Education Minister Syed Sardar Shah hints licensing for professional development of teachers
5 hours ago -
Tanda Dam search operation concludes, last body retrieved
5 hours ago -
Foreign Minister Bilawal Bhutto Zardari speaks at Prayer Breakfast in Washington, emphasizes importa ..
5 hours ago -
Hina arrives in Sri Lanka on two-day official visit
5 hours ago -
Fertility Conference held at Shaikh Zaid Women Hospital Larkana
5 hours ago
Education - Urdu News - Car Prices - Breaking News - English News - Live Tv Channels - Urdu Horoscope - Horoscope in Urdu - Muslim Names in Urdu - Urdu Poetry - Love Poetry - Sad Poetry - Prize Bond - Mobile Prices in Pakistan - PTV Sports - English to Urdu - Big Ticket - Translate English to Urdu - Ramadan Calendar - Prayer Times - DDF Raffle - Islamic Calendar - Events - Today Islamic Date - Travel - UAE Raffles - Travel Guide - Arabic - Urdu Cooking Recipes - Directory - Pakistan Results - Past Papers - BISE - Schools in Pakistan - Academies & Tuition Centers
UrduPoint Network is the largest independent digital media house from Pakistan, catering the needs of its users since year 1997. We provide breaking news, Pakistani news, International news, Business news, Sports news, Urdu news and Live Urdu News
© 1997-2023, UrduPoint Network
All rights of the publication are reserved by UrduPoint.com. Reproduction without proper consent is not allowed.