The Securities and Exchange Commission of Pakistan (SECP) initiated 189 show-cause proceedings against chief executives, directors and auditors of listed and unlisted companies, which had failed to comply with the provisions of the laws. The Enforcement Department of the SECP issued these notices in April and May 2013.
These enforcement actions were taken in view of the breaches of statutory requirements relating to takeover regulations, issuance of auditors' reports, powers of directors, holding and proceedings of annual general meeting, failure to comply with the direction to hold over-due annual general meetings, misstatement of facts, employees' provident funds, circulation of financial statements, disclosure of directors' interests, treatment of surplus on revaluation of fixed assets and security deposits.
The department has concluded 139 proceedings against directors and auditors of companies either by penalizing and/or by warning the identified defaulters. In addition, the department has also initiated inspections into the affairs of four companies while investigations have been initiated into the matters of two companies. Addressing the grievances of investors successfully, the department resolved 33 complaints. These complaints were mainly pertaining to non-issuance of shares, non-verification of transfer deeds, and non-payment of dividends.
Two companies were granted exemption from the statutory duty of filing of consolidated financial statements, as provided under the law. While one listed company was allowed to change its financial year to coincide the year-end of its financial statements with that of its parent company. Two companies were allowed extension in time to hold their overdue annual general meetings. An application for registration as a group was approved.-PR