Govt to amend rules regarding hiring of legal counsel by BoDs

ISLAMABAD: The government is slated to amend the Rules of Business, 1973 to bind the board of directors (BoDs) of autonomous bodies (ABs) to consult the Law and Justice Division during the appointment of counsels.
According to sources, the Cabinet Committee on Institutional Reforms (CCIR), in its meeting held on January 7, 2021, had considered a working paper submitted by the Institutional Reforms Cell (IRC) titled “Amendments in the Rules of Business” and directed the Law and Justice Division to submit a summary for the CCIR on the following guidelines:
a) Autonomous bodies, such as public sector companies, should prepare a panel of legal counsels or legal firms for such a period as may be decided by the BoDs wherein the same should be intimated to the law division.
b) Autonomous bodies, in each case, with the approval of the board, should intimate proposed legal counsels or legal firms to the Law and Justice Division.
In both cases, any observations should be conveyed by the division to controlling ministries/divisions within ten working days.
Sources said that the CCIR had also directed the cabinet division to submit a summary for the amendments in the Rules of Business, 1973 as per recommendations of CCIR.
The CCIR had considered the proposed amendments threadbare and formulated its recommendations in that regard.
A thorough discussion was held regarding the extent of powers of BoDs of ABs for the appointment of legal counsels, wherein it was also discussed whether ABs should hire such services with the approval of their BoDs or after consultation of the Ministry of Law.
As per details, the CCIR was informed by the IRC that the proposed amendments in the Rules of Business, 1973 had also been discussed with the Cabinet Division, Law & Justice Division and the Prime Minister’s Office (PMO).
Only after consultation with the aforementioned bodies were the amendments presented for consideration of the CCIR.
Minister for Law Dr Mohammad Farogh Naseem, who was present on special invitation, explained the legal merit of the proposed amendments with regard to the Constitution of Pakistan.
During the meeting, the Adviser to the Prime Minister on Institutional Reforms and Austerity Dr Ishrat Hussain opined that the ABs should not be treated as governmental bodies as they have their own BoDs.
Similarly, the special assistant to prime minister on petroleum was of the view that if the public sector companies were to become successful businesses, their functional independence had to be ensured for quick decision making.
Naseem was of the view that ABs registered under the Companies Act are owned, controlled and managed by the federal government, ergo the federal government always remains a party in case of any litigation.
Therefore, the ABs should have some mechanism of consultation with the Law and Justice Division, he opined.