Regulated business sector should be promoted on viable grounds: SECP

Regulated business sector in Pakistan should be promoted on viable grounds to strengthen the national economy and in this connection additional facilities and incentives have been proposed in new Draft Companies Bill by Security and Exchange Commission of Pakistan (SECP). However, efforts are also being initiated to make it more comprehensive, acceptable and result-oriented by inculcating practicable suggestions of the concerned stake holders, said Tahir Mehmood, Commissioner SECP.
He was addressing an awareness session in FCCI on new draft Companies Bill here today. This session was also attended by Mian Muhammad Adrees, former President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Abdur Rehman Qureshi, Adviser to Commission, Jawed Husain, Registrar of Companies, Mehboob Ahmed, Additional Registrar of Companies, SECP Faisalabad.
He said that over regulation is root cause to discourage the business entities to switch over to corporatisation. However, during last few years conscious efforts were made to facilitate and encourage corporate sector and this proposed draft is the outcome of our sincere efforts. He said that Abdur Rehman Qureshi and Jawed Hussain worked hard to prepare the draft bill and in this connection they continued to work daily up to 18 hours to give final touches to this Draft which is now ready for consultation with the stakeholders and to make it more effective and acceptable to the concerned quarters.
He further told that minimum documents have been proposed while they have suggested minimum interference of regulators in the affairs of the registered and listed companies. He requested the participants of the meeting to give their indiscriminate opinion along with viable suggestions to make it a comprehensive legal document.
Mian Muhammad Adrees former President FPCCI said that a critical analysis of this Draft is imperative so that necessary amendments could be proposed to make it acceptable to the business community. He said that Pakistan is ranked at 124th in terms of ease of doing business. In China a company could be formed within a day but it is not the case in Pakistan, however applicant has to wait for many days to get its company registered.
He welcomed the organizing of this consultative session at FCCI and underlined the timing for discussion. He said that it is high time to discuss the pros and cons of this draft bill as after the passage of this Bill, the ultimate beneficiary or sufferer will be the business community itself.
He asked the FCCI members, Chartered Accountants, Advocates to critically analyze each and every clause of the Bill to make it acceptable to the corporate sector. He also requested Commissioner SECP to ensure that no clause of any Law in Pakistan should be contradictory to the Islamic values and norms.
He was appreciative of the keen interest taken in the meeting by the stake holders and proposed that a committee comprising Secretary General FCCI Abid Masood and Iqbal Ghouri should be formed to give a proper shape to the proposed amendments so that it could be dispatched to the SECP for appropriate amendment in the draft.
Jawed Hussain Registrar of Companies SECP gave a detailed presentation on the Draft Companies Bill. He also underlined the aims and objectives of various amendments and told that the ultimate objective of this Bill is to facilitate the corporate sector. He hoped that Corporate Sector will respond and give viable suggestions to make it comprehensive and acceptable to the concerned stakeholders.
Syed Zia Alamdar Hussain Acting President FCCI said that Faisalabad has emerged one of the most vibrant economic and business centres of Pakistan after Karachi but the member of corporate restricted to only 1054. He said generally the Government Policies are framed without any consultation which not only complicates the problems confronted by the business community but also not to achieve the desired objective of the Government.
He also said that Companies Act 1913 was replaced by Companies Ordinance 1984, amendments were made during 199 and 2002 but despite of these efforts it failed to convince business community to form corporate entities.
During Question-Answer Session Chaudhry Talat Mehmood, Sheikh Ashfaq Ahemd, Anwarul Haq, Jamil Gulzar, Rana Asghar and other participants raised interesting questions while Mian Muhammad Adrees presented a shield to Mr Tahir Mehmood Commission SECP. Similarly, Sheikh Ashfaq Ahemd and Syed Zia Alamdar Hussain also gave FCCI mementos to Abdul Rehman Qureshi advisor to commissioner and Jawed Hussain registrar of Companies.