SECP amends rules to minimise corporate disputes

31 May, 2016

The SECP has amended the Companies (General Provisions and Forms) Rules, 1985, particularly regarding transfers and further allotments of shares in the companies and has issued a notification in this regard. The amendments are aimed at minimising the growing corporate disputes between shareholders and the management or within the management of companies. The amendments prescribe the detailed procedure for transfer of shareholding in the private company.
The shareholders of the private company shall have pre-emptive right to buy shares offered by any other shareholder. All private and public unlisted companies are required to notify the transfer of shares on prescribed form to the registrar within 15 days from such transfer.
The proposed amendments further bind companies to send offer for new shares to the existing members at least 15 days before the last date of the acceptance of offer. The payment of the shares so accepted by the members shall only be made through normal banking channels. In case of removal of directors under section 181 of the Companies Ordinance, 1984, the proposed amendments prescribe certain documents to be annexed with the return (form-29) to be filed with the registrar for notification of such removal.-PR

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