The National Assembly on Monday unanimously passed the landmark Companies Bill with an aim to give an impetus to national economy and stimulate economic growth.
The more than 500 clauses bill, the Companies Bill 2017 intends to replace the Companies Ordinance 1984 in order to consolidate and amend the law relating and encourage and promote corporatization in the country based on best international practices. Created with detailed input by members both from the opposition and the treasury benches, this comprehensive bill will ensure maximum participation of members in decision making process of the company through use of modern electronic means of communication and aim to address the issues relating to protection of interest of minority share holders and creditors.
Moving the bill on behalf of Finance Minister Ishaq Dar, Minister for Law and Justice Zahid Hamid said the bill will facilitate growth of economy in general and the corporate sector in particular by providing simplified procedure for ease of starting and doing business and greater protection of investors.
He said the bill would provide adequate manners against fraud, money laundering and terrorist financing as necessary provisions have been proposed regarding powers of the SECP including joint investigation and provision requiring officers of a company to take adequate measures to curb such violations.
This bill also provides for relief and incentives to corporate sector especially small and medium size companies as market experts and business community were at unison during various consultation sessions on the bill.
The legislation will elevate Pakistan’s economy and address long standing demands of the business community to compete with the international market players with reduction in cost of incorporating and doing business.
It will also encourage use of modern communication technology coupled with simplified regulatory procedure and provide much needed relied to corporate sector. Moreover, it will also address corporate solvency and growth in Pakistan through expeditious merger and acquisition mechanism.
