ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed the public sector companies, which come under the scope of the State-Owned Enterprises (Governance and Operations) Act, 2023, to ensure compliance with the Companies Act, 2017.

The SECP issued the directive to all the public sector companies here on Wednesday.

It is apprised that the federal government has promulgated the State-Owned Enterprises (Governance and Operations) Act, 2023 (SOE Act) since January 31, 2023, which is applicable to State-Owned Enterprises (SOEs) that come under the scope of the SOE Act.

In pursuance to Section 4 of the SOE Act, the federal government has notified State-Owned Enterprise Ownership and Management Policy, 2023 (SOE Policy) on 27 November 2023 and para 8 of said policy provides as under: The SOEs that come under the scope of the Act will not comply with Public Sector Companies (Corporate Governance) Rules, 2013, except; otherwise, provided in the policy.

Provided that in case there is no specific provision in relation to any manner in the Act, the provisions of the Companies Act, 2017, shall apply mutatis mutandis.

Moreover, in case of SOEs falling under sub-section (2) of Section 505 of the Companies Act, 2017, the provisions of the Companies Act, 2017, referred therein, shall be applicable to the extent as provided therein to such SOEs except as otherwise provided in the Act.

Keeping in view above, public sector companies that come under the scope of the SOE Act are directed to ensure compliance with the SOE Policy.

Copyright Business Recorder, 2024