ISLAMABAD: After the approval of the Federal Cabinet and the President of Pakistan, the new company law has been promulgated as the Companies Ordinance, 2016.

On the advice of the Finance Minister, the SECP Chairman has also constituted a committee of senior officers, which will apprise the corporate sector on the new law and for guidance of the stakeholders. The committee comprises of Jawed Hussain, Executive Director (051-9100-476) [email protected], Bushra Aslam, Executive Director, CCD, (051-9100-416) bushra.aslam @secp.gov.pk, and Muzaffar Ahmed Mirza, Chief Prosecutor, (051-9100-481) muzzafar.mirza @secp.gov.pk

In order to spread awareness about the new company law a seminar is being organised on Wednesday, October 16, 2016 at NICL Building auditorium, Jinnah Avenue, Islamabad. The seminar will be chaired by Federal Finance Minister Ishaq Dar.

Simultaneously, the Securities and Exchange Commission of Pakistan has written letters to the presidents of various Chambers of the Commerce in the country requesting them to hold awareness sessions/meetings to explain and highlight the new regulations and concepts introduced in the Companies’ Ordinance of 2016, while ensuring at the same time smooth transition of the corporate sector from the old regulatory framework, i.e. Ordinance of 1984 to the Ordinance of 2016.

The senior SECP officers will also attend the session to explain the salient features of the law. A cross section of people including members of the business community as well as parliamentary leaders, professionals, lawyers and other stakeholders have applauded the initiative by the Finance Minister to promulgate the law in such a short time which would not have been possible without his continuous support, guidance and personal involvement in finalizing the law.

As opposed to the 1984 Ordinance, the new law includes a number of detailed provisions with regard to starting new companies, regulatory framework, stock exchange businesses, resolution of disputes, fraud investigations, money laundering, protection of investments, Sharia compliance companies, agriculture promotion company, free zone company and real estate company. In addition, under the Ordinance of 2016, the SECP shall maintain a companies’ Global Registrar of Beneficial Ownership which will have complete record of the beneficial ownership of the substantial shareholders and officers of a company in local and foreign companies.

The major focus of the new company law is the facilitation to the corporate sector, strengthening the regulatory frame work, putting emphasis on the use of technology, abolishing unnecessary requirements for doing business, protection of the interests of shareholders, and a softer regime for the companies having no stake of the general public.—PR