ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has again directed the listed companies to modify their usual planning for annual general meetings up to January 31, 2021 to avoid large gathering at one place to limit the spread of the coronavirus at the annual general meeting of shareholders.
The SECP has issued circular number 33 of 2020 here on Saturday on the issue of coronavirus-related contingency planning for general meetings of shareholders.
In light of the continuing threat posed due to the Covid-19 pandemic and to protect the wellbeing of the shareholders, the SECP, in exercise of powers conferred under Section 510 of the Companies Act, 2017, hereby further extends applicability of its Circular No 5 of 2020 dated March 17, 2020 to Annual General Meetings and Extra-Ordinary General Meetings to be held up till January 31, 2021, the SECP stated.
The SECP, while realising the responsibility of the companies to its shareholders, and to limit their risks, while at the same time retaining the shareholders’ right to vote on the proposed agenda at the AGMs, during the threat posed by evolving Covid-19 situation (coronavirus) pandemic has in exercise of powers conferred under Section 510 of the Companies Act, 2017 (XIX of 2017) had issued a Circular No 5 of 2020 directing the listed companies, whose financial year ended on December 31, 2019, to modify their usual planning for annual general meetings in order to avoid large gathering at one place.
The companies have been asked to consider provision of video link facilities, webinar or other electronic means.
The companies shall also be required to provide email, WhatsApp number, mobile number or any other electronic mean through which shareholders can provide comments/suggestions for the proposed agenda items of the AGM.
It will be the responsibility of the company secretary and chairman of the meeting that comments/suggestions of the shareholders should be discussed in the meeting, and made part of the minutes.
The companies shall disseminate the aforesaid details to the shareholders through its website, the Pakistan Stock Exchange and addendum/notice in newspapers along with complete information necessary to enable them to access the facility.
Any change in venue shall also be communicated to the shareholders.
Maximum participation of shareholders be ensured via electronic means and by requesting members to consolidate their attendance through proxies, while honouring quorum provisions.
The companies shall consider protective measures during the meeting i.e. provision of hand sanitizers, masks, and distant seating etc.
For special business, voting through postal ballot shall be considered, the SECP maintained.
With reference to Circular No 02/2018 dated February 9, 2018 it is again re-emphasised by the SECP that the provision of gifts/incentive in any form to shareholders at or in connection to general meetings is strictly prohibited under Section 185 of the Act, the SECP added.
Copyright Business Recorder, 2020