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Recommendations finalised for amending Companies Rules, 1985

KARACHI (March 18 2003) : The Securities and Exchange Commission of Pakistan (SECP) has finalised its recommendations for amending the Companies (General Provisions and Forms) Rules, 1985 with a view to updating the Rules prescribing various matters as required under the Companies (Amendment) Ordinance, 2002 and to remove the practical difficulties experienced in its enforcement.

The Commission has elicited opinion from the general public on the proposed amendments, which have been published in the official Gazette and also placed on the SECP web site (www.secp.gov.ok).

Members of the public and other parties concerned have been invited to forward their comments and views to the Commission within fourteen days.

The suggested amendments mainly prescribe the additional particulars to be provided by the subscribers, directors and officers of a company to mention national identity card number or in the case of foreign national, passport number.

The loan repayment defaulter of a financial institution for an amount exceeding one million rupees, declared by a court of competent jurisdiction, shall be ineligible for appointment or continued appointment as director of a company.

Capital expenditure exceeding Rs 1,000,000 on any single item and disposal of a fixed asset of the book value worth Rs 0.5 million will require approval of board of directors.

Company secretary of listed company or a single member company shall possess the qualification of either a member of Institute of Chartered Accountants of Pakistan or the Institute of Cost and Management Accountants of Pakistan or the Institute of Corporate Secretaries of Pakistan or to hold a degree in Law from a university recognised by the Higher Education Commission.

Further, auditor's report on the consolidated financial statements of a holding company and review reports on the interim financial statements of subsidiary company have been prescribed.

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