AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Islamabad, The Securities and Exchange Commission of Pakistan (SECP) has released Circular No. 7/2024, offering detailed clarification on its authority to call or direct the calling of general company meetings under section 147 of the Companies Act, 2017. This clarification aims to address the procedures in cases where companies fail to hold their general meetings as required.
According to Securities and Exchange Commission of Pakistan, the circular specifies that the SECP can direct the holding of overdue general meetings either on its own motion or upon the application of any company director or member. This mechanism is intended to ensure that companies comply with their obligation to hold general meetings, providing a remedy in situations where the company’s usual management processes are ineffective.
The SECP’s guidance further states that individual members or directors may submit applications under section 147, provided these applications are well-supported by justifiable reasons and accompanied by relevant documentary evidence. However, applications made by or on behalf of the companies themselves will not be entertained, as a company cannot seek direction against its own failure to convene a meeting.
Additionally, the circular clarifies that any overdue meetings convened by defaulting companies in accordance with legal requirements will be considered valid, regardless of whether section 147 has been invoked. The full text of the circular is available on the SECP’s website, offering a comprehensive understanding of these provisions to ensure transparency and compliance within the corporate sector.