Companies Bill, 2016 To Prove As Game Changer For Corporate Sector:

ISLAMABAD, (UrduPoint / Pakistan Point News - 03rd Nov, 2016 ) : Expressing satisfaction over the approval of draft of Companies Bill, 2016 by the Federal cabinet, Chairman Securities and Exchange Commission of Pakistan (SECP) Zafar ul Haq Hijazi on Thursday said that the enactment of Companies Act would be proved as a game changer for corporate sector of the country.

He said once the Companies Act was enacted, the number of registration of companies would be increased by 100 per cent as the businessmen would be facilitated after the introduction of a number of amendments in the Bill.

Addressing a press briefing here, the Chairman SECP said owing to a widespread use of the latest information technology, manual work have been proposed to be replaced by the online work in the new law.

Hijazi said once the Companies Act was enacted, the companies would be asked to keep the record of foreign investment in the shape of the Companies Global Register of Beneficial Ownership. "Under the provision, every shareholder, director and officer of the companies has to report the beneficial ownership or any other interest outside Pakistan", he said adding the companies would also be required to report their foreign equity investments to the SECP.

He said after the approval of the Companies Bill, 2016, the SECP had become able to claim that the legal framework available for country's capital market and corporate sector had become in line with the requirement of international standards.

Zafar Hijazi hoped that the Companies Bill would be approved by the Parliament very soon. He informed earlier, the basic laws including Securities and Exchange Amendment Act, 2016, Securities Act, 2015 and Futures Market Act, 2016 had already been approved by the Parliament.

He said the work of preparation of final draft of Insurance Act was in process and hoped that it would be finalized within 30 days. The chairman SECP said the role of Finance Minister Ishaq Dar in finalizing the draft of the Bill can not be ignored as he personally involved in this process.

"Indeed the Finance Minister, despite his busy schedule, provided guidance for the legislation process of SECP for which I am thankful to him", Zafar Hijazi added. He said the new law would be finalized soon as it would be presented before parliament for approval before the end of the current Calendar year.

Replying to a question, Zafar Hijazi informed that the SECP had a plan to create a fund consisting of unclaimed dividends and the income out of this fund would be utilized for the education of investors. He said that the total amount of the unclaimed dividends were estimated to be amount Rs 08-10 billion.