Every public company bound to maintain functional website: SECP

The Securities and Exchange Commission of Pakistan (SECP) has conveyed to the corporate sector that every public company is bound to maintain a functional website and place stipulated mandatory information thereon.
According to an order issued by Director Company Law Division SECP here on Thursday, the order shall dispose of the proceedings against the chief executive (the respondent) of a company. The proceedings were initiated through a show cause notice (SCN) dated October 14, 2016 issued under the provisions of section 495 read with section 476 of the companies ordinance.
The brief facts of the case are that the commission through the notification SRO 634(1)/2014 dated July 10, 2014 (SRO-1) directed every public company to maintain a functional website with effect from August 30, 2014 and place stipulated mandatory information thereon. Furthermore, the commission through the notification SRO 684(1)/2015, dated July 15, 2015, (SRO III) also directed all public companies to place website link of SECP's investor education portal Jamapunji (www.jamapunji.pk) along with its logo at a prominent place on the homepage of their websites. In terms of the commission's SRO 1222(1)/2015 dated December 10, 2015 (the SRO III) every public company was directed to maintain a functional website in English as well as Urdu language.
It was noticed that the company had, prima facie contravened the directions of the Commission given vide the SRO-I, SRO-II & SRO-III by not providing the complete information and by not following the sequential order in line with the requirements of the SROs. Consequently, the SCN was issued to the respondent whereof he was called upon to show cause in writing as to why penal action may not be taken against him under sub-section (1) of section 495 of the Ordinance for not complying with the Commission's direction given vide the aforesaid SROs.
In terms of the Commission's SRO-I issued in pursuance of powers conferred by section 506B of the Ordinance, listed companies have been directed to maintain a functional website and provide mandatory information including placement of quarterly and annual accounts and specific information relating for (A) profile of the company (B) governance, (C) investors relations, (D) media, (E) election of directors, (F) and investors information, the SECP order said.
The SRO-I further provides where a company does not comply with or makes default in compliance with requirements of the notification, every officer of the company and every other person responsible for non-compliance shall be punished in accordance with provisions of section 495 of the Ordinance.
The SRO-II and SRO-III require public companies to maintain their websites in Urdu as well as English languages and place website link and logo of SECP's investor education portal JamaPunji.
The sub-section (1) of section 495 of the Ordinance states where any directive is given or order is issued by the court, the officer the commission, the registrar or the federal government under any provision of this Ordinance, non-compliance thereof within the period specified in such direction or order shall render every officer of the company or other person responsible for non-compliance thereof punishable, in addition to any other liability with fine not exceeding fifty thousand rupees and in the case of a continuing non-compliance to a further fine not exceeding two thousand rupees for every day after the first during which such non-compliance continues.
In terms of the Commission's notification SRO 1003(I)/2015 dated October 15, 2015, the powers to adjudicate cases under SRO.634(I)/2014 dated July 10, 2014 read with section 495 of the Ordinance have been delegated to the Director (Corporate Supervision Department), the order said.
The SECP has gone through the facts of the case, provisions of the Ordinance, requirements of the SRO-I and submissions made by the respondent in writing and on the date of hearing. Subsequent perusal of the Company's website reveals that it has maintained its website and has provided most of the information as per requirement of SRO-I, & SRO-II & SRO-III. Therefore, in exercise of the powers conferred by section 495 of the Ordinance, instead of imposing penalty, the SECP hereby concluded the proceedings without any adverse order and advise the respondent to be careful and ensure meticulous compliance with applicable laws and directions of the Commission, the SECP order added.