The Securities and Exchange Commission of Pakistan (SECP) has released a report to receive comments on the proposed amendments to the companies, 2020 (“Conditions”).
The purpose of the proposed amendment is to smooth the problem of shares, which have different rights and privileges by the companies listed, while the protection of the rights of minority shareholders and the discovery of strong corporate governance methods, transparency and cost.
According to the draft amendment, shares carrying voting rights will be entitled to profit. This ensures the alignment of economic benefits, preserves the importance of common shares, and aligning the rights of voting and profitability reduces conflicts of interest.
To protect and promote the government against inappropriate control of control and promote uniform government, it has been suggested that on the basis of the principle of a share, the principle of a vote, the joint voting power of all common shares will not be less than the seven company. These amendments also state that with various rights shares can have a maximum of 5 voting rights per share, and the common shares with different rights will be issued as a compulsory security.
Draft amendments follow the key stakeholders with widespread consultation processes, including PSX, CDC, NCCPL, listed companies, advisers, professional associations, law firms, and financial experts. These stakeholders provided precious opinions on the article in advance and consequently on personal and online consultation sessions. This opinion was carefully reviewed and analyzed to identify key insights, based on which the SECP has now published the draft amendment for the last round of the comments before finalizing the rules.
Opinion about the Draft Amendment can be submitted by 2 October 2025 (E -mail reserved).