Legal status becomes null and void

The legal status of the Companies Ordinance 2016 became null and void on Thursday after the Senate disapproved it through a resolution, restoring legal status of earlier Companies Ordinance 1984. A legal expert said when the Companies Ordinance 2016 was valid, all actions taken under the said Ordinance had legal backing. However, now no further proceedings in future could be taken on these actions under the said Ordinance as it is not now the law of the land. Now Companies Ordinance 1984 has been restored.
When contacted, Chairman Securities and Exchange Commission of Pakistan (SECP) Zafar Hijazi said that the Companies Ordinance 1984 has been restored. A fresh bill would not be required to be moved in the Parliament as National Assembly Standing Committee on Finance has already constituted a four-member sub-committee for further consideration on a bill regarding the Companies Ordinance, 2016, he said.
He said that the SECP would fully assist and brief the sub-committee on the new bill. The Finance Committee had constituted four Members Sub-Committee under MNA Muhammad Pervaiz Malik for further consideration on the said Bill. The Sub-Committee comprises MNAs Mian Abdul Mannan, Syed Naveed Qamar and Asad Umar. He said that the sub-committee of the National Assembly Standing Committee on Finance would consider the Companies Bill 2016 and due process would be followed. In the meantime, the Securities and Exchange Commission of Pakistan (SECP) will regulate the corporate sector under the Companies Ordinance 1984, while the draft Companies Bill 2016 has already been presented in the National Assembly on November 18, 2016, he added. While talking to Business Recorder, Senator Farhatullah Babar said that the Companies Ordinance 2016 does not exist as it has been disapproved by the Senate through a majority votes.
He said that the government will now have to introduce a new bill in the Parliament for legislation on the matter. Background revealed that the Companies Ordinance 2016 that replaced the Companies Ordinance 1984 was promulgated late Friday evening of November 12, 2016 by the President. The Companies Ordinance has been disapproved under the Article 89 of the Constitution, which grants the President of the country to promulgate Ordinances. However, following the 18th Amendment in 2010, sub- clauses were added in the Article 89 granting powers to any of the house to dissolve any Presidential Ordinance through a majority vote.