ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) initiated 189 show-cause proceedings against chief executives, directors and auditors of listed and unlisted companies which had failed to comply with the laws.
According to a press release, the enforcement department of the SECP issued these notices in April and May.
Enforcement actions were taken in view of the breaches of statutory requirements relating to takeover regulations, issuance of auditors’ reports, powers of directors, holding and proceedings of annual general meeting, failure to comply with the direction to hold overdue annual general meetings, misstatement of facts, employees’ provident funds, circulation of financial statements, disclosure of directors’ interests, treatment of surplus on revaluation of fixed assets and security deposits.
The department concluded 139 proceedings against directors and auditors of companies either by penalising and/or by warning the identified defaulters. In addition, the department also initiated inspections into the affairs of four companies while investigation had been initiated into the matters of two companies. So far, 33 complaints had been successfully resolved.
Two companies were granted exemption from the statutory duty of filing consolidated financial statements, as provided under the law, while one listed company was allowed to change its financial year to coincide the year-end of its financial statements with that of its parent company.
Two companies were allowed extension in time to hold their overdue annual general meetings. An application for registration as a group was approved.
Published in The Express Tribune, June 14th, 2013.
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