RECORDER REPORT

KARACHI: Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Shaikh Khalid Tawab has said that the Companies Ordinance 2016 should have been thoroughly discussed in the parliament and legislated as an Act rather than its enforcement through an Ordinance,

He felicitated Finance Minister Senator Ishaq Dar on promulgation of new Companies Ordinance 2016 because of its importance for the corporate sector and in the economy of the country but in his view it should have been better had the legislation been enforced as an Act.

“The legislation will encourage and facilitate best international corporate practices in the country and ensure maximum and effective participation of a company’s member in its decision making process,” he said adding that it was another feather in the finance minister’s cap.

Tawab cited that the Companies Ordinance 1984 had lost its efficacy hence it needed to be replaced with a new mechanism, which could take care of modern concept, philosophy and methods of the corporate sector including its current issues and requirements in view of the maximum use of information technology.

Commending a few salient features of the Companies Ordinance 2016, Tawab said that for the first time, special provisions had been introduced to facilitate SMEs, Shariah certification of companies and real estate companies’ requirement for enhanced protections to the investors.