ISLAMABAD, (MILLAT ONLINE/APP): Senate Standing Committee on Finance
on Friday discussed draft of “The Companies Bill 2017” proposing a
number of measures to facilitate corporate sector of the country.
The Companies Bill 2017 which has already passed by the
National Assembly Standing Committee was meant to replace the
Companies Ordinance, 1984.
Currently the corporate sector of the country was regulated
under the Companies Ordinance, 1984.
The committee which was chaired by Senator Saleem H Mandviwala
here, reviewed the draft clause by clause it reviewed and discussed
81 out of 514 clauses of the Bill.
The committee was informed that through the Companies Bill,
the laws relating to companies were being amended so as to encourage
and promote corporatization in Pakistan based on best international
practices and to ensure maximum participation of members in the
decision making process of the company through use of modern
electronic means of communication.
Secretary Finance Tariq Bajwa said the Bill aimed to address
the issues relation to protection of interest of minority
shareholders and creditors.
The meeting was further informed that the draft Bill contained
provisions including simplifying the procedures for incorporation of
companies, enable maximum use of technology, conversion of physical
shares into book-entry form in unlisted companies, encourage
paperless environment at all levels, relaxations to small and medium
enterprises, Shariah certifications of companies, requirements for
real estate companies for providing enhanced protection to the
investor, protection to independent and non-executive directors to
encourage inclusion in the board.
The Bill would also help relaxations for free zone companies,
registration of agricultural promotion companies for the development
of agricultural sector, establishment of investor education and
awareness fund, registration of valuers, resolution of disputes
through mediation and conciliation panel and passing of members’
resolution through circulation.
In order to ensure adequate measures against fraud, the
committee was informed that money laundering and terrorist financing
necessary provisions had been proposed regarding powers of the
Commission to investigate including joint investigation. Talking
to media after the meeting, Chairman of Securities and Exchange
Commission of Pakistan, Zafar Hijazi said the draft Bill would
facilitate the growth of economy in general and the corporate sector
in particular by providing simplified procedure for ease of starting
and doing business, greater protection of investors and augment
corporatization in the country.
The meeting was also attended by Senators Kamil Ali Agha and
Ayesha Raza Farooq.