The Securities and Exchange Commission of Pakistan (SECP) has laid down criteria for the appointment of panel of provisional managers and official liquidators for winding up of companies.
Through an SRO 610 (I) /2019 issued here on Thursday, the SECP has issued draft Panel of Provisional Managers and Official Liquidators Regulations, 2019. Under the Companies Act, for the purpose of the winding up of companies by the Court, the Commission shall maintain a panel of persons from whom the Court shall appoint a provisional manager or official liquidator of a company ordered to be wound up.
The Commission shall maintain a Panel of provisional managers and official liquidators for the purposes of section 315 of the Companies Act in the manner as it may deem fit. The provisional manager or official liquidator, as the case may be, already appointed by the court shall be exempt from the requirement of this regulation to the extent of such case for which the appointment was made.
Any person may apply to the Commission to be included in the Panel subject to the requirements of the Companies Act and laid down criteria. The applicant must have a bachelors' degree in law, or Masters degree in business, commerce, accounting, finance, management, administration, or equivalent, duly recognized by the Higher Education Commission (HEC) of Pakistan; or (ii)be a chartered accountant or cost and management accountant or ACCA from Association of Chartered Certified Accountants (UK) or such other equivalent professional qualification as may be notified by the Commission.
An individual shall be ineligible to be included in the Panel, if he is not a person resident in Pakistan is of unsound mind or applied to be adjudicated as an insolvent and his application is pending. An individual shall be ineligible to be included in the Panel, if he is an un-discharged insolvent; convicted by a court of law for any offence provided under the any law; has been debarred from being appointed as provisional manager or liquidator under the Act by the Competent Court and lacking fiduciary behavior and a declaration to this effect has been made by the court at any time during the preceding five years or declared by a court of competent jurisdiction as defaulter in repayment of loan to a financial institution.
In case of a Pakistani national, is not an income tax filer with the Federal Board of Revenue or failed to disclose fully any conflict of interest at the time of appointment as liquidator by the Court in any matter, SECP added. The Commission may, after affording reasonable opportunity of hearing to the applicant refusal to include the name of applicant in the Panel if in the opinion of the Commission such applicant does not meet the eligibility criteria and other requirements prescribed in the Act and these regulations.
The Commission shall maintain a register of provisional managers and official liquidators on Form; enter the names and such other information and particulars of persons whose names have been included in the Panel as it may deem fit.
The register as specified in sub-regulation (1) shall be available on website of the Commission for public view in such form and having such content as may be determined by the Commission, SECP added.