The Securities and Exchange Commission of Pakistan (SECP) has amended the Seventh Schedule (Fees) of the Companies Act, 2017 for the corporate sector to charge double amount of fee from companies for manual filing of documents as compared to electronic filing with the SECP. Sources told Business Recorder here on Saturday that the SECP has issued SRO 794(I)/2017 to amend Seventh Schedule of the Companies Act, 2017.
Under the amended Seventh Schedule of the Companies Act, 2017, the SECP will charge a fee of Rs 5,000 for seeking approval to extend period for companies under section 125 (power to close register) of Companies Act 2017. Sources said that under section 125 of Companies Act 2017, a company may, on giving not less than seven days' previous notice close its register of members, or the part of it relating to members holding shares of any class, for any period or periods not exceeding the whole thirty days in each year.
Provided that the Commission may, on the application of the company extend the period mentioned in sub-section (1), for a further period of fifteen days. In the case of listed company, notice must be given by advertisement in English and Urdu languages at least in one issue each of a daily newspaper of respective language having wide circulation.
The provision of this section shall also apply for the purpose of closure of register of debenture-holders of a company. Any contravention or default in complying with requirement of this section shall be an offence liable to a penalty of level 2 on the standard scale.
For submission of documents electronically, the SECP has specified a fee of Rs 5000 for approval to extend period for companies under section 125 (power to close register) of Companies Act 2017. For submission of documents in physical form, the fee of Rs 10,000 would be charged for approval to extend period for companies under section 125 (power to close register) of Companies Act 2017.
Sources said under section 196 of the Companies Act 2017 there is a bar on appointment of sole purchase, sales agents without the approval of the Commission. No company whether incorporated in Pakistan or outside Pakistan which is carrying on business in Pakistan shall, without the approval of the Commission, appoint any sole purchase, sale or distribution agent. Provided that this sub-section shall not apply to a sole purchase, sale or distribution agent appointed by a company incorporated, outside Pakistan, unless the major portion of the business of such company is conducted in Pakistan.
Whoever contravenes any of the provisions of this section shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to one hundred thousand rupees, or with both; and, if the person guilty of the offence is a company or other body corporate, every director, chief executive, or other officer, agent or partner thereof shall, unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent its commission, be deemed to be guilty of the offence.
For submission of documents electronically, the SECP will charge fee of Rs 5000 for granting approval to appoint sole purchase, sales agent under section 196. For submission of documents in physical form, the fee of Rs 10,000 would be charged for granting approval to appoint sole purchase, sales agent under section 196.
For submission of documents electronically, SECP will charge fee of Rs 5000 for granting approval to withhold or defer payment under section 243. For submission of documents in physical form, the fee of Rs 10,000 would be charged for granting approval to withhold or defer payment under section 243.
Sources said that the board of a holding company shall ensure that, except where in their opinion there are good reasons against it, its financial year and each of its subsidiaries coincides. The Commission may, on an application of a holding company or a subsidiary of the holding company, extend the financial year of any such company. While granting any extension, the commission may grant such other relaxations as may be incidental or ancillary thereto.
For submission of documents electronically, SECP will charge fee of Rs 2,500 for granting approval for extension of financial year under section 229. For submission of documents in physical form, the fee of Rs 5,000 would be charged for granting approval for granting approval for extension of financial year under section 229.
Sources said that the fee for registration as intermediary under section 455 has also been specified for individuals and firms/companies/ limited liability partnerships. Same registration fee as intermediary would be charged on submission of documents electronically or manually.
Following is the text of the notification SRO 794(I)/2017 issued by the SECP:- In exercise of powers conferred by sub-section (2) of section 507 read with section 462 and 469 of the Companies Act, 2017 (XIX of 2017), the Securities and Exchange Commission of Pakistan is pleased to direct that following amendment shall be made to Seventh Schedule to the Companies Act, 2017 (XIX of 2017), namely:-
In the aforesaid Seventh Schedule:-
1. In item No.X
(a) In sub item (1), proviso shall be omitted,
(b) After sub item (10), the following new sub item shall be inserted, namely:-
"(10A) approval to extend period under section 125, a fee of...." 5,000; 10,000
(c) in sub item (13), the words " an unlisted"; shall be omitted;
(d) after sub item (14), the following new sub item shall be inserted, namely:-
(14A) approval to appoint sole purchase, sales agent under section 196, a fee of...." 5,000; 10,000
(e) after sub item (18), the following new sub items shall be inserted, namely:-
(18A) approval for extension of financial year under section 229, a fee of.... 2,500; 5,000
(18B) approval to withhold or defer payment under section 243, a fee of...." 5,000; 10,000
and
(f) for sub item (28), the following shall be substituted, namely:-
(28) registration as intermediary under section 455, a fee of ....
(i) for individuals: 10000, 10000; registration fee: 2000, 2000; renewal fee: 5000, 5000 and filing fee: 500, 500.
(ii) For Firms/Companies /Limited Liability Partnerships: Registration fee: 50000, 50000; correction/update fee: 5000, 5000; renewal fee: 25000, 25000 and filing fee: 500, 500.
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