Shares with voting rights entitled to dividends, SECP seeks public feedback on proposed amendments

New draft amendments aim to balance shareholder rights, ensure transparency, and enhance corporate governance practices

The Securities and Exchange Commission of Pakistan (SECP) has issued a notification seeking public feedback on proposed amendments to the Companies (Further Issue of Shares) Regulations, 2020.

The amendments are designed to improve the process for listed companies issuing shares with different rights and privileges, while ensuring robust corporate governance and safeguarding the rights of minority shareholders.

Under the proposed changes, shares with voting rights will also be entitled to dividends, aligning voting and dividend rights and minimizing conflicts of interest. 

Additionally, the amendments stipulate that the combined voting power of ordinary shares, which follow the “one share, one vote” principle, should account for at least 75% of the total voting power of all shares issued by the company.

The draft amendments also introduce provisions that shares with varied rights can have a maximum of five voting rights per share, and that ordinary shares with varied rights must be issued as listed securities.

The SECP’s proposed amendments follow extensive consultations with stakeholders, including the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan (NCCPL), and other industry experts. 

The feedback from these sessions has been reviewed, and the SECP is now seeking final comments before finalizing the amendments. Interested parties can submit feedback on the draft amendments until October 2, 2025, via email at [email protected].

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