Companies Act 2017: SECP relaxes regulatory deadlines

To facilitate companies and businesses in dealing with current crises due to Covid-9 pandemic, the Securities and Exchange Commission of Pakistan (SECP) Monday relaxed the regulatory deadlines under Companies Act 2017 including 30 days extension for holding annual general meetings (AGMs) by the companies.
The companies can now hold their AGM for the year ended on December 31, 2019 on or before May 29, 2020. In this regard, the SECP has issued a circular, here on Monday on the relaxation from certain provisions of Companies Act, 2017 due to Covid-19.
According to the SECP, the Commission using its powers conferred under section 510 of the Companies Act, 2017 approved following relaxations in relation to compliance with requirements of the Act:
One, all companies which are facing difficulties in timely holding the annual general meeting (AGM) for the year ended on December 31, 2019, are allowed a general extension for a period of 30 days as provided in section 132 of the Act for holding their AGMs. The companies can now hold their AGM for the year ended on December 31, 2019 on or before May 29, 2020.
Two: the companies, whose election of directors are due before or in the aforesaid AGM, may file impediment reports with the concerned registrar under section 158(2) of the Act citing the reasons for delay in holding the election of directors.
Accordingly, any statutory return, which is required to be filed on or after 24th March, 2020 may be filed with the concerned registrar with the delay of 30 days of occurrence of any event without any additional filing fee as no penal action shall be taken for the late filing.
The SECP's response to Covid-19 is focused on the health and safety of business workforce all over Pakistan and maintaining the continuity of economic activity. To ensure health and safety of all SECP team members, the SECP has adopted a plan to operate with 50% workforce from office and 50% workforce from home on weekly rotational basis, effective from March 24.
Especially the mothers who use in-house day care facility and employees with medical conditions have been asked to work from home. The Information technology Department of the SECP have completed arrangements to facilitate employees for WFH.
Moreover, all such assignments, which are not urgent in nature i.e. trainings and employee engagement activities etc., have been suspended for time being. All hearings by the Adjudication division would be done through skype /VC only.
SECP has already adopted required precautionary measures to ensure safety of people and resist the spread of Covid-19. These measures include closure of in-house gym, daycare and cafeteria, use of elevator for up to a maximum 03 persons at a time and ensuring social distancing in general.
The SECP has issued the said circular to the Chief Executive Officer of all companies with the year ended on December 31, 2019; Chief Executive Officer, Pakistan Stock Exchange Limited, Karachi; President, Institute of Chartered Accountants of Pakistan, Karachi; President, Institute of Cost & Management Accountants of Pakistan. Karachi; President, Institute of Corporate Secretaries of Pakistan, Karachi; President, Federation of Pakistan Chambers of Commerce and Industry, Karachi; Chairman, The Pakistan Business Council and Chairman, Overseas Investors Chamber and Commerce and Industry.
2) The companies, whose election of directors is due before or in the aforesaid AGM, may file impediment reports with the concerned registrar under section 158(2) of the Act citing the reasons for delay in holding the election of directors.