Regulations: SECP penalises CEO, company directors, auditors
Regulator says committed to promoting good corporate culture.
SECP resolved 29 complaints pertaining to non-issuance of shares, onverification of transfer deeds, and nonpayment of dividends. DESIGN: MUHAMMAD SUHAIB
ISLAMABAD:
As part of its mandate to safeguard investors’ interest in both the listed and unlisted corporate sector, the Enforcement Department of the Securities and Exchange Commission of Pakistan (SECP) in July and August initiated 73 show-cause proceedings against chief executives, directors and auditors in view of the breaches of statutory requirements related to matters of regulations and administration.
The department concluded 66 proceedings against chief executives, directors and auditors of companies either by penalising them or by issuance of warnings to the identified defaulters, depending on the nature and impact of default. In addition, the department also initiated inspection into the affairs of two companies.
Addressing the grievances of investors, the department resolved 29 complaints pertaining to non-issuance of shares, non-verification of transfer deeds, and non-payment of dividends. In addition the SECP, during the months mentioned, granted exemption to five companies from the requirements of filing of consolidated financial statements, as available under the law. A listed company was allowed to change its financial year to coincide with the year-end of its financial statements with that of its parent company. An application for registration as a group was also approved.
In order to promote a good corporate culture in the country, six companies were facilitated by relaxing the mandatory requirement of printing computerized national identity card numbers on dividend warrants, as provided under the law.
With regard to raising capital, relaxation was granted to a company from the requirement of Rule 8 of the 1996 Capital Issue Rule for issuance of shares for consideration other than in cash.
Published in The Express Tribune, September 18th, 2013.
As part of its mandate to safeguard investors’ interest in both the listed and unlisted corporate sector, the Enforcement Department of the Securities and Exchange Commission of Pakistan (SECP) in July and August initiated 73 show-cause proceedings against chief executives, directors and auditors in view of the breaches of statutory requirements related to matters of regulations and administration.
The department concluded 66 proceedings against chief executives, directors and auditors of companies either by penalising them or by issuance of warnings to the identified defaulters, depending on the nature and impact of default. In addition, the department also initiated inspection into the affairs of two companies.
Addressing the grievances of investors, the department resolved 29 complaints pertaining to non-issuance of shares, non-verification of transfer deeds, and non-payment of dividends. In addition the SECP, during the months mentioned, granted exemption to five companies from the requirements of filing of consolidated financial statements, as available under the law. A listed company was allowed to change its financial year to coincide with the year-end of its financial statements with that of its parent company. An application for registration as a group was also approved.
In order to promote a good corporate culture in the country, six companies were facilitated by relaxing the mandatory requirement of printing computerized national identity card numbers on dividend warrants, as provided under the law.
With regard to raising capital, relaxation was granted to a company from the requirement of Rule 8 of the 1996 Capital Issue Rule for issuance of shares for consideration other than in cash.
Published in The Express Tribune, September 18th, 2013.