Relaxed regulatory deadlines by SECP amid COVID-19 pandemic
In order to help companies and businesses facilitate the current crisis due to COVID-19, Regulatory deadlines under the Companies Act 2017 have been relaxed by the Securities and Exchange Commission of Pakistan (SECP).
Following regulations have been approved by SECP in the powers conferred under Section 510 of the Companies Act 2017:
- As provided in Section 132 of the Act, extension for 30 Days has been allowed for holding of the Annual General Meeting to those companies which are facing difficulties in holding AGM for the year ended 31st December 2019. The companies can now hold their meetings for the year ended 31st December 2019 on or before the 29th of May 2019.
- Those companies may file impediment reports with the concerned registrar under section 158(2) of the act whose election of directors is due before or in the above-mentioned AGM. The impediment report should cite the reasons for the delay in holding the elections of directors.
- An extension period of 30 days has been allowed for the filing of any statutory return which is required to be filed on or after 24thof March 2020. The statutory return would be filed with the concerned registrar after the occurrence of any event with a delay of 30 days. No additional filing fee would be charged as no penal action shall be taken for the late filing.
Maintenance of the continuity of the economic activity and health and safety of the business workforce all over Pakistan is being focused in the response of SECP to COVID-19. For ensuring the health and safety of Members of SECP, a plan of operating with 50% workforce from office and 50% workforce from home on the weekly rational basis is adopted by SECP having effect from 24th of March, 2020. The members who have been asked to work from home include especially mothers who use in-house daycare activity and the employees with medical conditions. To facilitate employees work from home, the arrangements have been completed by the Information Technology Department of SECP.
Moreover, all such unnecessary assignments including training and employee engagement activities have been suspended for time being. All hearings by the adjudication division would be done through skype video call only.
To ensure the safety of people and resist the spread of COVID-19, precautionary measures have already been taken by SECP. The measures included are closure of daycare and cafeteria, in-house gym, use of an elevator for up to a maximum 03 person at a time and social distancing has also been ensured in general.
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