Anti-competition watchdog: SECP penalises companies for breach of law
Initiates show-cause proceedings against directors, auditors, companies.
During the month, the department completed 24 proceedings against the companies either by warning or penalising identified defaulters.
ISLAMABAD:
As part of its mandate to monitor listed and unlisted companies to safeguard investor interest, the Enforcement Department of the Securities and Exchange Commission of Pakistan (SECP) has penalised a number of companies, their directors and statutory auditors for failing to comply with corporate laws and accounting standards in December 2012.
According to a press release issued by the SECP, the department initiated 39 show-cause proceedings against directors and auditors of listed and unlisted companies for failing to comply with applicable provisions of laws.
These enforcement actions were taken in view of breaches of statutory requirements like misuse of powers by directors, misstatements of facts or information in returns or documents, improper circulation of financial statements and late submission of quarterly accounts.
During the month, the department completed 24 proceedings against the companies either by warning or penalising identified defaulters.
It resolved 17 complaints filed by investors. These were related to shareholders that were deprived of their right to receive annual audited accounts, dividend warrants or right/bonus shares or unverified transfer deeds.
In addition, the SECP allowed two listed companies to appoint cost auditors under the Companies (Audit of Cost Accounts) Rules, 1998.
One company was directed to hold its overdue annual general meeting and another was told to ensure compliance with certain provisions of reporting standards.
With regard to increase in capital, the regulator permitted a listed company to issue preference shares.
Meanwhile, in three separate requests, companies were facilitated by granting relaxation from the requirements of 1996 Companies (Issue of Capital) Rules and exemption from preparation of consolidated financial statements.
Published in The Express Tribune, January 11th, 2013.
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As part of its mandate to monitor listed and unlisted companies to safeguard investor interest, the Enforcement Department of the Securities and Exchange Commission of Pakistan (SECP) has penalised a number of companies, their directors and statutory auditors for failing to comply with corporate laws and accounting standards in December 2012.
According to a press release issued by the SECP, the department initiated 39 show-cause proceedings against directors and auditors of listed and unlisted companies for failing to comply with applicable provisions of laws.
These enforcement actions were taken in view of breaches of statutory requirements like misuse of powers by directors, misstatements of facts or information in returns or documents, improper circulation of financial statements and late submission of quarterly accounts.
During the month, the department completed 24 proceedings against the companies either by warning or penalising identified defaulters.
It resolved 17 complaints filed by investors. These were related to shareholders that were deprived of their right to receive annual audited accounts, dividend warrants or right/bonus shares or unverified transfer deeds.
In addition, the SECP allowed two listed companies to appoint cost auditors under the Companies (Audit of Cost Accounts) Rules, 1998.
One company was directed to hold its overdue annual general meeting and another was told to ensure compliance with certain provisions of reporting standards.
With regard to increase in capital, the regulator permitted a listed company to issue preference shares.
Meanwhile, in three separate requests, companies were facilitated by granting relaxation from the requirements of 1996 Companies (Issue of Capital) Rules and exemption from preparation of consolidated financial statements.
Published in The Express Tribune, January 11th, 2013.
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