The Senate panel has floated a proposal to make changes to the Companies Bill 2017 which will make it mandatory for all those Pakistani’s having substantial shareholding in a company abroad to reveal their monetary assets and interests in foreign countries. Clause 452 of the Companies Bill 2017 has been modified by the Senate Standing Committee on Finance which oversees the company’s global register of beneficial ownerships. This amendment has also received the backing of the Security and Exchange Commission of Pakistan (SECP).
According to this new amendment, “Every substantial shareholder or officer of a company incorporated under this act, who is citizen of Pakistan within the meaning of the Citizenship Act, 1951, having shareholding in a foreign company or body corporate shall report to the company his shareholding or any other interest as may be notified by the commission,” In accordance with these changes, it would be mandatory for individuals to reveal their interests within thirty days of holding such a position on a specific form. Due to these new changes, the bill will once again have to be passed by the lower house of parliament.
Under these new enacted provisions, foreign owned entities won’t be required to share information regarding beneficial ownership but only in cases where SECP asks for it. The Companies Bill 2017 was introduced last year in response to the Panama leaks scandal and the government had initially wanted foreign owned entities to reveal all their offshore interests but this provision was rejected by the National Assembly.
