The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments in the Companies (General Provisions & Forms) Rules, 1985 to minimise the growing incidents of corporate disputes between the shareholders and the management or within the management.
The proposed amendment has been notified in the official gazette for solicit of public opinion. The proposed amendments prescribe detailed procedure for transfer of shareholding in a private company. The shareholders of a private company shall have pre-emptive right to buy shares offered by any other shareholder. Moreover, in case of all private and public unlisted companies the amendments also prescribe the returns for notifying transfer of shares to the registrar within 15 days from such transfer.
Regarding further allotments of shares, the proposed amendments bind the company to send offer for new shares to the existing members at least 15 days before the last date of the acceptance of offer. The payment of the shares so accepted by the member shall only be made through normal banking channel.
In case of removal of directors under section 181 of the Companies Ordinance, the proposed amendments prescribe certain documents to be annexed with the prescribed form-29 to be filed with the registrar for notification of such removal. The proposed amendments notification has been uploaded at the official website of the SECP for seeking public opinion.
