Senate ratifies changes in Companies Bill

ISLAMABAD: Senate on Wednesday passed the Companies (Appointment of Legal Advisers) (Amendment) Bill 2016.

Minister for Law and Justice Zahid Hamid, on behalf of the Minister for Finance and Revenue Mohammad Ishaq Dar, moved the bill to amend the Companies (Appointment of Legal Advisors) Act 1974 [the Companies (Appointment of Legal Advisers) (Amendment) Bill 2016] in the house.

Senator Mohsin Khan Laghari proposed the amendment. The statement of objects and reasons of the bill said it would ensure compliance and better regulation of the law. The commission will be able to take timely cognizance of the violation of the provisions of the Act rules or regulation made there under and impose penalty.

Appeal process has also been provided. Besides, it will also give reprieve to small companies from the mandatory requirement of appointing legal advisor. On December 16, the Senate blocked Companies Ordinance 2016, which replaced the Companies Ordinance of 1984, on the ground that it should be approved by the lawmakers. The ordinance was promulgated on Nov 12.

The bill contains provisions to simplify the procedure for incorporation of companies, enabling maximum use of technology, conversion of physical shares into book entry form in unlisted companies and encouraging paperless environment at all levels. The bill encourages use of modern electronic means of communication to ensure maximum participation of members in the decision making process of the company. It also includes special provisions to facilitate small and medium enterprises.

Meanwhile, the chairman referred the Public Private Partnership Authority Bill 2016 to the concerned standing committee for further deliberation. Minister Hamid, on behalf of the finance minister, moved the bill.