ISLAMABAD, April 18 (SABAH): A person declared financial bankrupt will not be eligible to become the director of any company, this was stated by the authorities of Security and Exchange Commission of Pakistan while giving a briefing over the Companies Ordinance at the meeting of the Senate Standing Committee on Finance chaired by Senator Saleem Mandviwalla.
It would now be possible for companies to hold board meeting through video conference the minutes of which will be received by the board members within seven days, the SECP said adding that independent directors will be exempted from legal action.
In addition the powers of the directors are also being accorded to the board and no company will neither take part in political activities nor fund political parties. In addition, the companies will not be allowed to give gifts to anyone and will be fine Rs 25,000 if they do so. Daily fine will be imposed on those failing to pay the fine.
When Senator Mohsin Aziz asked the SECP officials what constitutes ‘gift’ Senator Saood Majeed opposed slapping ban on giving gifts because ‘gifts help increase affection’ adding that there is a ban on corruption but not on giving gifts.
When Mandviwalla said that shareholders demand gifts Zafar Hijazi opposed it saying that shareholders should not be given a single rupee gift.
SECP also said that chairman SECP companies could appoint a CEO within 14 days who has to file tax return on the fifteenth day.
Mandviwalla said that the investors had concerns over fines and punishments. Saying that if someone has committed a crime he should be punished, he asked for toning down the penalties.