SECP relaxes regulatory deadline amid COVID-19 concerns

• SECP has relaxed the regulatory deadlines under the Companies Act.

In order to facilitate companies and businesses in dealing with current crises due to the COVID-19 pandemic, the Securities and Exchange Commission of Pakistan (SECP) has relaxed the regulatory deadlines under the Companies Act.

The Commission used its powers conferred under section 510 of the Companies Act, 2017 approved following relaxations in relation to compliance with requirements of the Act: (I) All companies which are facing difficulties in timely holding the annual general meeting (AGM) for the year ended on December 31, 2019, are allowed a general extension for a period of 30 days as provided in section 132 of the Act for holding their AGMs.  The companies can now hold their AGM for the year ended on December 31, 2019, on or before May 29, 2020.

(II) The companies, whose election of directors is due before or in the aforesaid AGM, may file impediment reports with the concerned registrar under section 158(2) of the Act citing the reasons for the delay in holding the election of directors.

(III) Accordingly, any statutory return, which is required to be filed on or after 24th March 2020 may be filed with the concerned registrar with the delay of 30 days of the occurrence of any event without any additional filing fee as no penal action shall be taken for the late filing.