Senate to strike down Companies Bill 2016

Islamabad

The Senate is all set to strike down the Companies Bill 2016 that was made a law through presidential ordinance, as the lawmakers in Senate Standing Committee on Finance informed the SECP officials that this step was equivalent to sidestepping the democratic setup. 

The Senate committee that met here with Senator Saleem Mandviwala in the chair said, “There has to be a reason for making law through ordinances – either we do not have a Parliament, or that the Assembly and Senate are deliberately not approving bills.”

He added, “Up to 35 senators have already signed the resolution to strike down the Companies Law 2016 and more are going to signing it.” The committee informed the Securities and Exchange Commission of Pakistan (SECP) officials that approving any Bill through an Ordinance was equivalent to bypassing the democratic setup.

It was the consensus of the lawmakers including Senator Ilyas Bilour of ANP, Senator Nasreen Jalil of MQM, Senator Mohsin Leghari and even Senator Saud Majeed of the PML-N who expressed concerns that the laws were being approved without the consent of the Parliament.

“Now we do not know what is there in the Ordinance, first you bulldoze the system than do whatever you want through that law and eventually bring it to the parliament for approval,” Mandviwala said.

Talking to media persons after the meeting, he said, “There was no justification of undertaking legislation through ordinances when the Parliament was functional.” He said even if the law was undone, the actions taken under the Ordinance would remain an issue.

The Companies Law 2016 that replaces the Companies Ordinance 1984 was promulgated late evening on November 12 by the President of Pakistan as an Ordinance.

Currently, the Ordinance has been presented in the National Assembly to be made as an act of Parliament.

The Committee also considered the ‘Benami Transactions (Prohibition) Bill 2016 aimed to declare hiding of wealth either in property or in any other form of asset. People who want to hide their wealth park their unaccounted wealth in real estate in the names of their drivers, maids or through shell companies.

Members of the committee noted that the draft bill should incorporate provisions to hold the officials accountable for their misconduct. “There cannot be any crime or misdoing without the support of relevant officials – either police or customs, similarly the tax frauds are committed only in connivance with FBR,” said Senator Ilyas Bilour.

They also suggested that there has to be a provision to penalise the officers who frame false cases, possibly to extract money from the accused.

The objection came over the clause in the Bill that the officer would file case against the ‘benami property holder in good faith.’

“This is common practice in FBR and other departments too – you make a case in ‘good faith’, grill a person for six months, let him be defamed all over the world and then the case is closed due to lack of evidence,” said Senator Saud Majeed.

However, Chairman FBR, Nisar Muhammad Khan said that there are provisions in the EstaCode against the misconduct of any officer. 

The Committee also decided to file an amendment in the draft Bill to include the provisions of rewarding the ‘whistle-blower’ who would inform the FBR over such assets that are held in the names of servants, children, spouse etc who do not have financial strength to purchase such properties. The committee would start hearing views of State Bank of Pakistan, Law Division and tax experts over the Bill from the next meetings.