Islamabad, June 06, 2016 (PPI-OT): During May 2016, the Exchange Commission of Pakistan (SECP) disposed of 86 show-cause proceedings initiated against companies, their directors and auditors for violating various provisions of the Companies Ordinance, 1984. The SECP also initiated 14 fresh show-cause proceedings against the erring management and companies’ auditors for various violations of the ordinance.
The Corporate Supervision Department of the SECP continued with the strategy of focusing on the quality of audits being performed by the statutory auditors and concluded four proceedings against auditors for not discharging their duties in line with applicable provisions and failure to bring out material facts about affairs of companies. Moreover, new two proceedings were initiated against auditors. The department concluded five proceeding against the erring management of companies for misstatements and omission of material facts in the financial statements. The department proceeded with winding up against two non-operating companies while authorizing the registrar to present winding up petition before the court. Moreover, 8 orders were issued to companies for non-maintenance/non-placement of mandatory information on their websites.
The department also concluded two proceedings for initiating inspection and investigation against two listed companies under Sections 231 and 265 of the ordinance, respectively and appointed inspectors with the direction to submit their reports within 60 days about the affairs of companies. Besides, 22 warnings were issued to companies to ensure full compliance with corporate laws and applicable financial reporting standards. During the month under review, the department resolved 131 complaints from shareholders of various companies.
For more information, contact:
Shakil Ahmad Chaudhary
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)