Amendments in Companies Rules 1985 proposed

• Under the proposed amendments, shareholders of a private company shall have pre-emptive right to buy shares offered by any other shareholder

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments in the Companies Rules 1985 to minimize corporate disputes between shareholders and management or within the management.

Under the proposed amendments, shareholders of a private company shall have pre-emptive right to buy shares offered by any other shareholder.

The amendments also bind the company to send offers for new shares to the existing members at least 15 days before the last date of the acceptance.

The payment of shares accepted by the member shall only be made through normal banking channel.