SECP directed to amend companies bill

ISLAMABAD: While deferring the Companies (Amendment) Bill 2021, the Senate Standing Committee on Finance and Revenue has directed the Securities & Exchange Commission of Pakistan (SECP) to incorporate certain changes in the bill and table it before the panel till Monday

In this regard, a committee meeting was held under the chair of Senator Talha Mahmood which reviewed the Companies Amendment Bill, 2021 and Tax Laws Amendment Bill, 2021, whereas consideration over the Corporate Restructuring Companies Amendment Bill, 2021 was recessed till the next meeting.

According to details, the amendment bill has proposed that private companies having paid-up capital up to Rs1 million should be exempted from filing of unaudited financial statements. However, the committee proposed to increase paid-up capital from Rs1 million to Rs3 million for granting exemption to private companies from filing of unaudited financial statements.

Briefing the meeting about the bill, the Securities and Exchange Commission of Pakistan (SECP) underlined that the voting power of the members in the company has been reduced from 10 per cent to 5pc for bringing a resolution.  

“Similarly, the condition of revealing the name of father or husband is also being removed in the amended bill,” he added.

The SECP chairman said that a company with Rs1 billion turnover will be included in start-ups while concession and privileges will also be provided to a company having this amount of turnover.

On the other hand, the FBR chief tax officer briefed the committee on the Tax Laws Amendment Bill, 2021 for the new financial year. 

FBR officials told the committee that the Tax Law Ordinance has been made part of the Finance Bill, 2021.