Single-member entities: SECP proposes amendments in rules

ISLAMABAD:

The Securities and Exchange Commission of Pakistan (SECP) has proposed certain amendments in the Single Member Companies (SMC) Rules, 2003.

To facilitate the corporate sector, the requirements of nominee and alternative nominee directors as well as particulars and documents of legal heirs of the single member have been proposed to be deleted from the rules.

The SECP introduced the concept of SMC in 2002. A detailed framework for registration of single-member companies was provided through Single Member Companies Rules, 2003.

These rules allow single persons/businessmen to convert their non-corporate entities into companies with limited liability of the members and enabling them to deal with public entities as companies rather than individuals.

However, it was observed that the SMC concept could not flourish as expected because of cumbersome pre-incorporation procedures.

Published in The Express Tribune, February 20^th,  2015.

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