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SECP extends companies Easy Exit Scheme

KARACHI (March 11 2004): The Securities and Exchange Commission of Pakistan (SECP) has re-launched the 'Companies Easy Exit Scheme' (CEES) for four months ending on June 30, 2004.

The SECP, after considering the feedback received from the corporate sector regarding the CEES launched in 2002, has decided to re-launch the scheme.

This would provide another opportunity to dormant private limited companies, non-listed public companies and companies limited by guarantee to avail the exit facility and get their names struck off the register of companies.

The scheme shall remain operative for a limited period of four months ending on June 30 2004.

Dormant private companies, non-listed public companies and companies limited by guarantee, which have no business operations, assets or liabilities, intending to benefit from the scheme have been advised to file applications to get their names struck off the register of companies along with the prescribed formalities within the time fixed by the SECP.

The application should be supported by the Board of Directors' resolution or a resolution passed by the shareholders of the company and a declaration duly verified by an affidavit administered before an Oath Commissioner confirming the position stated therein.

It would also affirm that the company has no liabilities outstanding in relation to any loans obtained from banks or financial institutions, taxes, utility charges or any obligations towards government departments or private parties. The declaration shall be furnished by a director, preferably chief executive, of the company.

The company shall also produce a certificate from a practising Chartered Accountant or a practising Cost and Management Accountant firm which shall confirm the position of its liabilities, if any.

A fee of Rs 5,000 shall be charged from a private limited company and Rs 7,500 from a non-listed public company or a company limited by guarantee.

The Regional Registrar shall initially publish the notices in the official Gazette inviting objections on the application and for public information.

Three months later a final notice of dissolution of the company shall be published in the official Gazette and the applicant company shall, at that time, stand dissolved.

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