SECP relaxes regulatory deadlines

Aims to facilitate companies, businesses in dealing with current crisis

ISLAMABAD: In order to facilitate companies and businesses in dealing with the current crisis caused by the COVID-19 pandemic, the Securities and Exchange Commission of Pakistan (SECP) has relaxed regulatory deadlines under the Companies Act.

In a statement on Monday, the commission, using its powers conferred under Section 510 of the Companies Act 2017, approved a few relaxations in relation to the requirements of the Act.

First, all companies, which are facing difficulties in holding the annual general meeting (AGM) in time for the year ended December 31, 2019, are allowed a general extension of 30 days as provided in Section 132 of the Act for holding their AGMs.

“The companies can now hold their AGM for the year ended December 31, 2019 on or before May 29,” read the statement. Moreover, the companies whose election of directors is due before or in the aforesaid AGM may file impediment reports with the registrar concerned under Section 158(2) of the Act, citing reasons for delay in holding the election of directors.

Accordingly, any statutory return, which is required to be filed on or after March 24, 2020 may be filed with the registrar concerned with the delay of 30 days of occurrence of any event without any additional filing fee as no penal action will be taken for the late filing. The SECP said its response to COVID-19 was focused on the health and safety of business workforce all over Pakistan and maintaining the continuity of economic activity.

To ensure the health and safety of all SECP team members, the commission said it had adopted a plan to operate with 50% workforce from office and 50% workforce from home on a weekly rotational basis, effective from March 24. Especially, the mothers who use in-house day-care facility and employees with medical conditions have been asked to work from home.

Moreover, all such assignments, which are not urgent in nature ie training and employee engagement activities etc, have been suspended for the time being. All hearings by the Adjudication Division will be done through Skype/VC only.

Published in The Express Tribune, March 24^th, 2020.

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