Please refer to the amendment in the Finance Bill 2007, in the Section 204-A of the Companies Ordinance, 1984 regarding Compulsory Appointment of Independent Share Registrar by Listed Companies.
The purpose of the proposed amendment appears to be that the secretarial task of handling transfer of shares and its record be undertaken by independent share transfer agents/share registrars as stipulated in "The Balloters, Transfer Agents and Underwriters Rules, 2001".
Relevant points in this respect are brought to your kind notice as under:-
1. Most of the Listed Companies had been admitted to CDS in the capacity of Issuer with Central Depository Company of Pakistan, Karachi since long. Their shares approximately 50% to 95% had already been transferred to CDC-Investor Accounts of the Shareholders up to 30-06-2007 through their independent Share Department which are working smoothly under qualified and whole time Company Secretaries.
2. Further, the appointment of Independent Share Registrar will be difficult especially for textile mills which are under crisis and even many textile units had already stopped operation/working due to the extraordinary increase in cost of production.
3. Professional fees shall be a burden on most of the companies as practically there will be no work of shares transfer either physically or through CDC after transfer of shares to CDC-Investor Accounts of the shareholders.
UNDER THESE CIRCUMSTANCES, IT IS SUGGESTED TO THE SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN AS UNDER:
1. Mandatory Appointment of Share Registrar be made necessary for newly Listed Companies and those Listed Companies whose shares are less than 50% are transferred to CDC-Investor Accounts of the Shareholders as on 30-06-2007.
2. Whereas, those Listed Companies whose more than 50% shares had already been transferred to CDC-Investor Accounts of the Shareholders as on 30-06-2007 and had employed whole time qualified Company Secretary according to Section-204 (A) be exempted from Mandatory Appointment of Share Registrar.
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