There are adequate measures against fraud, money laundering and terrorism financing in the proposed companies law being discussed by the Senate Standing Committee on Finance. A meeting of the Senate panel convened by Senator Saleem Mandviwalla on Friday for consideration of "The Companies Bill 2017" was postponed. An official of the committee section said that the meeting could not take place due to non-availability of its members for two reasons; the session of the Senate has been prorogued and the committee members usually leave for their hometowns on weekends.
However, the Investment Wing of the Finance Division through a brief informed the committee that "necessary provisions have been proposed in the law regarding powers of the commission to investigate, including joint investigation. Furthermore, provisions requiring officers of a company to take adequate measures to curb such violations have also been proposed."
The Finance Division further stated that the proposed draft law intends to replace the ordinance in order to consolidate and amend the laws relating to companies so as to encourage and promote corporatisation in Pakistan based on best international practices and ensure maximum participation of members in the decision-making process of through use of modern electronic means of communication.
The committee has almost considered half of the proposed draft law. The committee meeting was submitted that the registration of agricultural promotion companies for the development of agricultural sector is also provided in the proposed law, besides provisions for simplifying the procedure for incorporation of companies, enabling maximum use of technology, conversion of physical shares into book-entry form in unlisted companies, encouraging paperless environment at all levels, and relaxations to small and medium enterprises. The draft law also contains provision of Shariah certifications of companies, requirements for real estate companies to provide enhanced protection to the investor, protection to independent and non-executive directors to encourage inclusion in the board, manner of selection and maintenance of databank of independent directors, relaxations for free zone companies, registration of agricultural promotion companies for the development of agricultural sector and establishment of investor education and awareness fund.