SECP advises companies to avoid gatherings in wake of corona threat

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ISLAMABAD: In light of the threat posed by the evolving Covid-19 (coronavirus) and to protect the wellbeing of shareholders, the Securities and Exchange Commission of Pakistan (SECP) has advised all the companies to modify their usual planning for annual general meetings.

Meeting of the board of director may also be held through tele/video conferencing, said a press release issued on Wednesday.

SECP has recommended all companies to consider and evaluate the risks in the present situation. Every company is required to hold an annual general meeting (AGM) within sixteen months from the date of its incorporation and thereafter once in every calendar year within a period of 120 days following the close of its financial year.

As AGM season for December end companies is approaching, the directors and secretaries should modify their usual planning for their company’s AGM in light the threat posed by the evolving COVID-19 situation.

Directors should consider if members can consolidate their attendance and voting at AGMs with as few people as possible through proxies, while honoring quorum provisions.

In order to avoid large gathering at one place, the companies may consider provision of video link facilities at different locations considering the geographical dispersal of its members.

The companies shall consider basic protective measures during the meeting including facility of cleaning hand with sanitizers or soap and water. Moreover, for safety of members seating arrangement shall be made at appropriate distance.

Furthermore, voting through postal ballot may be considered by the chairman of the meeting or by the members present in person or through video-link or by proxy having not less than one-tenth of the total voting power by demanding poll for resolutions.

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