Companies Ordinance 2016: Senators convey their displeasure to SECP

The Senate Standing Committee on Finance has voiced its serious concerns over making the 'Companies Bill 2016' a law through a Presidential Ordinance. A meeting of the Senate Standing Committee on Finance has informed the officials of the Securities and Exchange Commission of Pakistan (SECP) that approving any bill through an ordinance is regretful in democracy, which is tantamount to bypassing a democratic set-up.
He said that around 35 senators have already signed the resolution against the enforcement of Companies Law 2016 through an ordinance and more are expected to jump on the bandwagon. Senators Ilyas Bilour, Nasreen Jalil, Mohsin Leghari as well as ruling party's Senator Saud Majeed shared the committee chairman's concerns that the legislation was being done by bypassing the Parliament.
Senator Saleem Mandviwalla said that the Standing Committee on Finance had approved 30 bills. Talking to media persons after the meeting, he said, "There was no justification for undertaking legislations through ordinances when the Parliament was functional." He said even if the law was undone, the actions taken under the Ordinance would remain an issue.
The Senators across the party divide said there was a laid-down system to formulate a legislation through the parliamentary committee and government's preference appears not to follow the procedure. The chairman of the committee stated that the committee members are "blind" as to what was in the Ordinance. The Companies Law 2016 that replaces the Companies Ordinance 1984 was promulgated by the President of Pakistan as an Ordinance.
The Ministry of Finance and Federal Board of Revenue (FBR) on the issue of difficulties being faced by the Edhi Administration in connection with the auction of their 300 ambulances stated that the issue stands resolved.
The FBR said it had been facilitating the auction/disposal of old and used ambulances of Edhi Foundation without payment of duty and taxes by issuing Special Exemption Orders. However, after rescinding of section 20 of the Customs Act, 1969, the FBR was constrained to issue any such Special Exemption Order.
To facilitate the disposal of ambulances of the Edhi Foundation, in line with the past practice, an amendment in the relevant law was made and under the current provisions, ambulances of Edhi Foundation are entitled for disposal without payment of duty and taxes after expiry of seven years from the date of their importation, the meeting was informed.
Accordingly, the Edhi Foundation may approach the concerned Collector of Customs to resolve any specific difficulty being faced by them in the auction for their old and used ambulances.