The new corporate law will serve as a tailored solution to the specific needs of Pakistan’s corporate sector. PHOTO: FILE
ISLAMABAD:
In an effort to ensure timely completion of the much-awaited review of the country’s existing corporate laws, Securities and Exchange Commission of Pakistan (SECP) Chairman Muhammad Ali established a dedicated secretariat with the sole objective of drafting a new corporate law, said a press statement issued on Saturday.
The new corporate law will serve as a tailored solution to the specific needs of Pakistan’s corporate sector and cater to the aspirations of entrepreneurs and investors alike.
The secretariat, located at the SECP’s headquarters, will work closely in coordination with the Corporate Law Review Commission (CLRC), formed in 2005 under the chairmanship of Justice (retd) Ajmal Mian to undertake a review of corporate law.
Previously, the CLRC lost the initial momentum due to various extraneous reasons but the SECP, having recognised the extreme importance, rejuvenated the project.
Now, the CLRC had been engaged in in-depth research into various international corporate law models of economic significance and renown such as the US State of Delaware – home to more than 60% of the Fortune 500 companies – the recent Companies Act 2006 of the United Kingdom, the new Indian Draft Bill and the corporate law regimes in the Asia-Pacific region.
The SECP envisions a law that is accessible and streamlined, with a focus on making the setting up of a company and starting business as convenient and small investor friendly as possible without sacrificing on the flexibility and sophistication demanded by larger corporations.
Published in The Express Tribune, March 31st, 2013.
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