Companies Law

SECP accounts for 2015-16 indicate that appropriation towards tax was at Rs 140 million and that its revenue during the year was Rs 2.6 billion. Surplus of income over expenditure before tax was Rs 415 million. Fees and other recoveries, under various regulatory laws viz. Companies, Modaraba, Insurance Laws etc at Rs 2,572 million contributed to these financial achievements. Very impressive figures indeed for the stakeholders sans the ones regulated by SECP who were made to dish out this money.
The Companies Ordinance, 2016, presentation of which as a bill for approval to the legislature the Government skipped, can also be projected as the means to achieve an impressive 'accounting performance', yelling of the business under weight of sorts of governmental levies apart. Many thanks to the Senate for assistance to give a fresh eye to the now proposed legislation.
Performance is measured, keeping in view the objective of a set-up against targets spelled out through its manifesto. The treasure it churns out does not give it a mark. Its performance in monetary terms is not to be taken as its achievement, the corporate idealists would hold. No wonder it is often argued that it should not be a body of the 'finance' or under it. The Finance Ministry helps flow of funds to the exchequer. In its second pocket should not be governance of the corporate sector, wherewithal to turn its financial wishes into reality. It is altogether a different subject whether it succeeds or not.
Given the size of rather nascent corporate houses it caters, SECP is doing a job. It may fare well when its achievements are juxtaposed with similar bodies elsewhere. What is worrisome is also concentration of powers in the hands of SECP. Permit to frame laws for business, authority to frame regulations, superintend corporate sector, act as investigator, charge sheet the offenders, holding hearings and announcing in relation therewith. In the "pursuits" of dispensing justice in case of offences it awards penalties. Because it frames rules, interprets and enforces the same and acts as adjudicator it is hum hee kooza-o-ham hee koozagar. Such a power one organisation should not have in our milieu, in disregard to what may be happening elsewhere. Let us ponder whether controlling SECP should be Finance Ministry or the Ministry of Law? The business of hearings and adjudication should shift to the Law Ministry with no power with SECP to interpret the laws and regulations.