ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue, on Wednesday, unanimously passed the Companies (Appointment of Legal Advisors) (Amendment) Bill, 2016″.
The bill will require from companies registered under Companies Ordinance, 1984 with minimum paid-up capital of Rs 0.5 million to appoint one legal adviser, on retainership fee basis. The retainership fee was raised from Rs 500 to Rs 1,200 per month in 1994 but the limit of paid-up capital remained unchanged.
The retainership fee is a fixed amount of money that a client agrees to pay, in advance, to secure the services of a consultant or freelancer. The fee is typically not associated with the success of a project or based on achieving particular results. A retainer is often paid in a single, lump sum, or on an ongoing basis (typically monthly or quarterly).
The bill will also grant judicial powers to registrars of companies for taking action against the defaulting companies and will raise the minimum limit of paid-up capital to Rs5 million as requirement for appointment of legal advisers.
NA committee met here with Qaiser Ahmad Sheikh in the chair to discuss agenda items including , The Benami Transaction (Prohibition) Act, 2016, The Companies (Appointment of Legal Advisors) (Amendment) Bill, 2016 as well as the implementation status of the recommendations made by the Standing Committee.
Chairman of the Standing Committee informed the committee Finance Minister Ishaq Dar had once again assured him to accommodate budgetary proposals and recommendations of the committee in the final budget draft for the fiscal year 2016-17 on priority basis.
In this regard he said that he had held a special meeting with the finance minister on day before yesterday and presented draft of recommendations passed by the committee to him. He said that Dar while going through the draft of recommendations, made a staunch assurance to him that almost all the recommendations would be made part of final budget draft for the fiscal year 2016-17.
It is pertinent to note that budget draft along with proposals moved by the members are under discussion in both the Houses of the parliament and is most likely to be approved by the parliament by 22nd of current month.
