SECP Relaxes Deadlines for Companies To Meet Regulatory Requirements

In order to facilitate companies and businesses in dealing with current crises due to COVID-9 pandemic, the SECP has extended few deadlines for entities for meeting the regulatory requirement under Companies Act.

The commission using its powers conferred under section 510 of the Companies Act, 2017 approved following relaxations in relation to compliance with requirements of the Act.

Extension Period for Holding AGM

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.

Elections of Board’s Directors

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.

Filing of Statutory Returns

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 occurrence of any event without any additional filing fee as no penal action shall be taken for the late filing.

SECP Operates Itself With 50% Staff

The SECP’s response to COVID-19 is focused on the health and safety of business workforce all over Pakistan and maintaining the continuity of economic activity. To ensure health and safety of all SECP team members, the SECP has adopted a plan to operate with 50% workforce from office and 50% workforce from home on weekly rotational basis, effective from March 24.

Especially the mothers who use in-house daycare facility and employees with medical conditions have been asked to work from home. Information technology Department of the SECP have completed arrangements to facilitate employees for WFH.

Moreover, all such assignments, which are not urgent in nature i.e. trainings and employee engagement activities etc., have been suspended for time being. All hearings by the Adjudication division would be done through skype /VC only.

SECP has already adopted required precautionary measures to ensure safety of people and resist the spread of COVID-19. These measures include the closure of in-house gym, daycare and cafeteria, use of an elevator for up to a maximum 03 persons at a time and ensuring social distancing in general.

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