ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) had initiated proceedings during November-December 2014 in 67 show-cause notices against companies who did not meet the legal requirements.
The Enforcement Department of the SECP initiated these proceedings due to noncompliance of the legal requirements regarding holding of annual general meeting (AGM), investment in associated companies, disclosure of statement of material facts, directors’ powers, auditor’s report, circulation of directors’ report, disclosure of directors’ interests, circulation of financial statements, employees’ provident funds and security deposits, it said. It also concluded 39 proceedings against the companies and some chief executives, directors and auditors of the companies during this period.
Facilitating the companies, the department allowed two listed companies to issue right shares within one year of the earlier issue of share capital by way of right, while another company was allowed to issue shares by way of otherwise than right. In addition, one company was allowed to issue right shares at a discount, the statement said.
The department also accorded approvals and relaxation from certain provisions of laws and rules. In addition, 52 investor complaints pertaining to non-issuance of shares, non-verification of transfer deeds and non-payment of dividends were resolved. It has recommended the revision in swap ratio of proposed merger of two companies to the higher courts.
