The Securities and Exchange Commission of Pakistan on Monday notified amendments to the Companies (Further Issue of Shares) Regulations, 2020, revising the framework governing the issuance of shares with differential rights and privileges by listed companies.
According to the regulator, the amendments introduce uniformity in dividend entitlements, requiring all ordinary shares carrying voting rights to receive the same dividend per share. The revised rules also mandate that the aggregate voting power of ordinary shares, based on the principle of one share, one vote, must not fall below 75% of a company’s total voting power.
Under the amended regulations, shares issued with varied voting rights will be capped at a maximum of five votes per share, while ordinary shares carrying differential rights will be required to be listed securities.
SECP said the changes are aimed at strengthening corporate governance, improving transparency, ensuring effective price discovery, and limiting excessive concentration of control that could undermine minority shareholder interests.
The amendments were finalised following consultations with a range of stakeholders, including the Pakistan Stock Exchange Limited, Central Depository Company, National Clearing Company of Pakistan Limited, listed companies, consultants, professional bodies, and law firms. The regulator said feedback received during the process was reviewed before the final notification of the revised rules.
