SECP disposes of 36 show-cause proceedings

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) during April disposed of 36 show-cause proceedings against companies, their auditors and directors for various alleged violation of provisions of the Companies Ordinance, 1984, a statement issued on Tuesday said.

During the month, the Corporate Supervision Department of the commission initiated 20 fresh show-cause proceedings against the companies for various violations of the ordinance, comprising non-holding of annual general meetings (AGMs), late filing of interim accounts for listed companies and failing to incorporate mandatory information on respective companies’ websites.

The Corporate Supervision Department continued the strategy to focus on the quality of audits being performed by the statutory auditors and concluded six proceedings through orders against the auditor for not discharging their duties in line with the applicable provisions and for their failure to bring out material facts about the affairs of companies as per Section 255 of the ordinance.

The department concluded five proceedings against companies for misstatements and omission of material facts in their respective financial statements / accounts.

The department concluded proceedings against one non-operating company where the registrar has been authorised to present winding up petition before the court.

Moreover, an order was issued to a company for non-maintenance / non-placement of mandatory information on its website.

Besides, 37 warning letters were issued to companies to ensure meticulous compliance with the corporate and allied laws and applicable relevant accounting standards.

During the month under review, the department resolved 141 matters to the satisfaction of the complainants.