Chairman SECP, Mr. Zafar Hijazi, accompanied by Commissioners and senior management officers, called on the Federal Minister for Finance, Senator Mohammad Ishaq Dar, at his office to express gratitude and sincere thanks for the guidance and support extended by him during the whole process and early promulgation of the Companies Ordinance, 2016, and other legislative reforms in Capital Markets and Corporate sector in the country.
The new Companies Ordinance, 2016 has replaced the 32 years old Companies Ordinance, 1984. With technological advancements and developments in corporate regulatory framework across the globe in past few decades, the complete revamping of old law was long overdue and it was much needed to bring the law in conformity with international best practices in regulating the corporate sector. Similarly, the desired improvements for the ease of doing business could not be achieved without an enabling legal framework. With the introduction of Companies Ordinance, 2016, Pakistan is now standing at par with developed jurisdictions like UK, New Zealand etc. where same exercise has been done in the past few years.
The Companies Ordinance, 2016 has been finalized after extensive consultations with all stakeholders across the country. The exercise included series of consultative seminars / roundtable meetings in all major cities of the country, and exclusive sessions with ICAP, ICMAP, leading lawyers and chartered accountants etc. The Minister for Finance himself chaired two such major seminars at Karachi and Islamabad.The Minister for Finance, while appreciating the efforts of SECP, stated that a number of legal reforms have been introduced in the last two years which include the Securities Act 2015, the Futures Market Act 2016, the SECP Amendment Act 2016, the Corporate Restructuring Companies Act 2016, the Companies Ordinance 2016, the Companies (Appointment of Legal Advisors) Amendment Bill, the Limited Liability Partnership Bill, and Corporate Rehabilitation Bill, whereas consultation with stakeholders on the new Insurance law and wide ranging amendments in Modaraba Ordinance have been completed.
The Finance Minister directed Chairman SECP to take immediate measures to ensure implementation of the new law and issue necessary directions to the regional offices of SECP across the country for the purpose. Further, SECP should create a cell of experts at the Head Office to provide guidance on the new law. The Government has promulgated the new law through Ordinance so that corporate sector may immediately benefit from the reforms introduced in the new Law.
The Finance Minister also stated that all the legal formalities for the approval of the Ordinance from Parliament shall be followed and valuable guidance / suggestions from honorable members of the Parliament will be welcome.
Chairman SECP apprised the Minister for Finance about recent measures taken by SECP for facilitation of corporate sector and enhancing the ease of doing business.