ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has announced regulatory relief for the corporate sector to dilute the impact of coronavirus.
Realising that companies have been facing difficulties in compliance with regulatory requirements related to communication with shareholders, holding AGMs [annual general meetings] and issuance of financial statements etc, SECP relaxed regulatory deadlines for listed companies.
The facilitations include:
- 30-day relaxation in holding AGMs on annual financial statements and filing deadline for first quarter financial statements.
- Companies can circulate the notices of general meetings and annual reports electronically.
- Though the law does not provide for any specific relaxation in requirement of holding of the BOD meeting once in every quarter. However, in terms of Section 179 of the Companies Act companies are encouraged to pass resolution by the directors through circulation.
The requirement for filing quarterly financial statements has not been relaxed except for the first quarter, but the SECP said that due consideration will be given to all underlying circumstances while enforcing regulatory compliance. Given the extraordinary circumstances, companies are advised to prioritise public safety as well, while ensuring corporate compliance. Companies are encouraged to make necessary arrangements for the use of technology and related applications in order to enable them to work from home to meet regulatory compliances.