Company law, the current 33 years old out mode, Companies Ordinance 1984 was perhaps the worst piece of legislation. But thankfully it is replaced with Companies Act 2017, a statute that is far better, simpler, and modern. The three broad changes made in Companies Act can be sum up as follows By replacing vagueness with clarity, even specifying three slabs of penalties for each day’s default. The SECP’s discretionary power will stand reduced, not increased.
We have made every effort to make it easier for corporate managers to conduct their affairs as efficiently as possible, such as holding board and general meetings in the easiest and fastest way possible, making mergers and deregistration of defunct companies easy, and so on.
The new Act provides SECP with entirely new sets of responsibilities and powers, such as certifying the whole sharia sector. In the real estate sector, approving mergers, offering mediation, and conciliation services for disputes between shareholders and companies. Collecting and maintaining a record of the ‘global interest’ of Pakistani directors and significant shareholders of Pakistani companies. And compelling large companies to fulfil their social responsibility such as inducting female directors and employing disabled persons.
The Panama Change is a new requirement for companies to disclose their global ownership. This is a big change for many companies, and it will have a significant impact on how they operate. The Panama Change will require companies to disclose their ultimate beneficial owners to the government. This information will be public, and it will be available to anyone who wants to see itThe Panama Change is a major change for companies, and it will have a major impact on how they operate. Companies will need to disclose their ultimate beneficial owners to the government, and this information will be public. This is a big change for many companies, and it will have a significant impact on how they operate. Under the Proposed Act, ‘every substantial shareholder’ or ‘officer’ of a Pakistani company, who is a citizen or a dual citizen of Pakistan, whether residing in Pakistan or not, shall have to report to his company any of his ‘shareholding in a foreign company or body corporate’ or ‘any other interest’ as may be notified by the Commission.