SECP amends rule to induction, cessation of directors & CEOs of firms

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), in line with its objective to simplify corporate reporting, has introduced key amendments to Regulation 50 of the Companies Regulations, 2024, to ensure a transparent and foolproof process for the induction and cessation of directors and chief executive officers (CEOs) of companies.

The amendments aim to address the challenges and concerns earlier faced by the directors and CEOs while reporting changes in their status.

Key changes include the requirement for the individual to provide consent through a digital PIN application before reporting of induction or cessation by the companies to the registrar.

The new feature will considerably reduce the false or fraudulent reporting by companies and shall ensure that incoming and outgoing directors or CEOs are informed through notifications via email and registered mobile number regarding the changes made by the companies in their reporting.

The amendments require all existing directors and CEOs to register themselves in the eZfile within three months from the date of notification or earlier before their induction, resignation or retirement.

The amendments also stipulate that all returns notifying the induction or cessation of directors or CEOs be filed exclusively through eZfile, enhancing the process’s efficiency and transparency.

Copyright Business Recorder, 2024