ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued draft amendments to Regulation 50 of the Companies Regulations, 2024, for comments and feedback from the public and experts. Purpose of the proposed amendment was to prevent misleading or fraudulent filing of statutory returns, report changes in management and directorships, ensure return authenticity, and minimize and reduce management disputes.
The Securities and Exchange Commission has recently introduced a new corporate registry, namely eZfile, a user-friendly online portal for company filing. As mentioned in the proposed amendments, it would be mandatory to file processes for change of management and directors online through eZfile to ensure digitization and authenticity of change of management reports reported by the company. Henceforth, no physical return for a change of management would be allowed to be filed by the companies with the Commission.
The proposed amendments outline a comprehensive practice for reporting and verifying changes in company management, including appointment, election, resignation, retirement, and removal of directors and CEOs. They also suggest that existing directors or CEOs not registered with the Commission through eZfile must register within three months of notification or before their resignation or retirement.
The proposed amendments notification can be accessed on the website of the SECP via the following link.
https://www.secp.gov.pk/laws/draft-for-discussion/draft-rules-regulations/
Public comments received within 14 days of the date of the notification would be considered by the Commission.
