Companies Ordinance 1984 to be replaced

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The Securities and Exchange Commission of Pakistan (SECP) has decided to replace the 27 year old Companies Ordinance 1984 with a new company’s law, as the existing law has become flawed and needed replacement with the new law to make it compatible with current circumstances and rules prevalent in the world. A 12 member team of Corporate Law Review Commission (CLRC) of SECP will draft new Companies Law and send it to Parliament by the end of next year, said Chairman SECP Muhammad Ali on Tuesday.
Briefing the media he said the new Companies Law would replace the 27 year old Companies Ordinance 1984. He said that the Companies Ordinance 1984 has become flawed and there is a need to make some amendments in it so that it becomes compatible with the current circumstances and rules prevalent in the world. Muhammad Ali said that Companies Laws prevalent in England, India and Australia would be consulted during the process and representatives as well as stakeholders would take part in the process. He said that in the new Companies Law small, medium and large companies will be dealt separately. He said that the work on new Companies Law was started in 2005 but it was not completed and now SECP has started working on it once again. He said that there are five hundred clauses that would be deliberated and amended one by one.
According to him the next meeting for consultation on the law will be scheduled on December 17. The securities Bill has detailed provisions dealing with securities exchanges, clearing houses and central depository which includes eligibility criteria for their registration, their duties, regulation making powers and accounts to be maintained by them. The Bill also includes licensing requirements, eligibility for licensing of market intermediaries including securities brokers, securities advisors, share registrar, and underwriters.
The enforcement powers of SECP includes, the power to call for information, inspection, public offer of securities, publication and contents of prospectus, criminal liability for defective prospectus, compensation for false or misleading prospectus and market offences which include insider trading, market manipulation etc and their penalties he said. Chairman SECP while answering the questions said that process of legislation in the Parliament is quiet long and needed to be speed up as four Acts sent by SECP have struck for last two years in Parliament for approval.

2 COMMENTS

  1. Pakistan steel Fabricating company which is 100% subsidiary of Pakistan steel which is registered with company ordinance-1984 Now said ordinance was replaced with Stock Exchange .The company is also certified with ISO-8000 but there are enforce of jungle law by implementation of Fake Pay scale you can be verified it was given in the year-2005 .The said action is a contrary against law it was not circulated by the Ministry of Finance.There are all employees working nature are with hand but deprived them from labour laws malifide intension.The holding Company Pakistan steel is a Parrent department all workers was transfered to there and started deprivation wit other employees by abolishing career Planing Policy w.e.f. 7.6.1992 Now in Pakistan steel restore the cereer Planing policy in the year-2009 and thousand employees has given right of Labour law but by the maladministration those employees have forcefully illegally make a officer since 1992 after lapse of 14 years they have not get kind of justice.The chief Executive officer Pakistan steel may be directed to extended same career planing policy to PSFCL employees since restoration June-2009 without delay.Due to this colur full practice employees have received irreparable losses. in shape of Promotion,Plots, Pay scales at par Pakistan steel employees. Higher authorties are earnestly requested to take action Please

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