Securities and Exchange Commission of Pakistan seeks comments on draft Companies (Easy Exit and Restoration) Regulations

Islamabad, July 07, 2014 (PPI-OT): The Securities and Exchange Commission of Pakistan (SECP) has issued draft Companies (Easy Exit and Restoration) Regulations to elicit stakeholders’ opinion. Draft regulations aim to make “easy exit” a permanent feature, while also prescribing the restoration mechanism for companies.

At present, a company wishing to close its business has to undergo a lengthy and cumbersome winding up procedure. For this purpose, Companies Easy Exit Schemes (CEES) were launched a number of times for specific periods to provide an alternate and easy exit mechanism for striking off a company.

These schemes have been success stories, whereby almost 9,500 companies availed easy exit opportunity to get their names struck off. There has been a continuous demand for making CEES a permanent feature. The SECP with the aim of facilitating stakeholders has drafted the CEES regulations, which prescribe an easy to follow process for an easy exit/strike-off.

Furthermore, restoration mechanism has also been prescribed in subject regulations, in the light of provisions of sub-section 9 of section 439 of the 1984 Companies Ordinance, whereby the ordinance empowers the Commission to restore a company on the recommendation of the registrar.

Draft regulations have been published on the web discussion forum of SECP for eliciting public/stakeholders opinion. Regulations can be accessed at http://www.secp.gov.pk.

Tickers:

1. The SECP issued draft Companies (Easy Exit and Restoration) Regulations, seeking public opinion

2. Regulations aim for providing easy exit procedure for a company seeking strike off from register of companies

3. Regulations also prescribe restoration mechanism for companies

For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk

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The post Securities and Exchange Commission of Pakistan seeks comments on draft Companies (Easy Exit and Restoration) Regulations appeared first on AsiaNet-Pakistan.

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