Amendments in companies Bill 2016, approves by NA Sub Committee: Chairman SECP

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ISLAMABAD, Jan 24 (APP):Chairman Securities and Exchange Commission of Pakistan (SECP),Zafar Hijazi on Tuesday informed that Companies Bill, 2016 has been approved by the National Assembly sub committee on Finance.
Many amendments to the companies’ bill were introduced and cleared by the subcommittee, said Zafar Hijazi,while addressing a press conference here on Tuesday at SECP head office.
Now the bill along with amendments will be sent to National Assembly to complete the needed legislative process, he said.
Chairman SECP said the breakup of amendments in Companies Bill, 2016 is as follows,new sections introduced 60,amendments in existing sections 306,no change 150,total 516.
He said that 45 comments letters were received from public media and they raised concern on 60 sections of the Companies Bill, 2016.
Amendments in 41 sections have been made based on feedback which has also been concurred by the NA sub-committee on Finance.
He said that changes have been agreed to the Companies Bill, 2016 pursuant to the deliberations made during the meetings of NA sub-committee on Finance.
Zafar said that Section 452,Provision relating to global register of beneficial ownership is being revised so that this section is applicable only to Pakistani nationals.
Further amendment has been made to criminalize failure by any person to provide requisite information to the registrar concerned,he added.
Further, such information will be shared with Federal Board of Revenue (FBR) and any other agency, authority or court.
It is also proposed to include reporting of any interest other than investment in securities or interest in a foreign company by a company, to the registrar concerned along with the annual return of the company.
In Section 439, Provision relating to information relating to beneficial owners of foreign companies is being revised.
Such information will only be required to be provided by the foreign company to the Commission if required,he said.
Any other information required in connection with any inspection, inquiry or investigation may also be demanded.
Further, a penalty of level 3 has been proposed to be imposed
on default.ú
He said that Section 461, Provision relating to security clearance of shareholders, directors and office bearers of companies is being restricted to companies notified by the federal government.
Section 153,Power to grant exemption has been proposed to be given to the Commission from the requirement for a director to hold National Tex Number (NTN) as per the provisions of Income Tax Ordinance, 2001.
Chairman SECP said that Section 456, Real estate companies soliciting advances shall be required to recognize their income in accordance with IFRS.
Further, the escrow account to be maintained for the real estate project shall be not subject to any attachment except for the purpose of the project.
He said that section 76 amended to cater for transfer of share agreement entered before enactment of Companies Bill, 2016.