Directors, auditors of 26 companies, SECP issues show cause notices

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The Securities and Exchange Commission of Pakistan (SECP) has issued show-cause notices to the directors and auditors of 26 companies for failing to comply with corporate laws and accounting standards.

These notices were issued by the enforcement department of the SECP in January 2013. The enforcement department also initiated proceedings against 23 companies on complaints received from shareholders.

The complaints were pertaining mainly to jeopardising the shareholders' right of receiving the dividend warrants, right/bonus shares and non-transfer of right shares. The SECP, as part of its mandate monitors listed and non-listed companies to safeguard investor interest and takes appropriate punitive action. These enforcement actions were taken in view of the breaches of statutory requirements noticed during the inspection of audited accounts of listed and non-listed companies.

In January, the enforcement department concluded twenty proceedings against directors and auditors of companies by imposing penalties and issuing the warning letters. On account of recommendations made by the enforcement department, the SECP also initiated an investigation into the affairs of a listed company.

Moreover, the SECP also granted extension for organising the Annual General Meetings (AGM) to two companies and also allowed a company to change the place of its AGM, while, four companies were directed to hold overdue AGM in due course of time. Furthermore, three companies were allowed to place their quarterly accounts on their website while nine companies were allowed to change their websites addresses.

Courtesy: Business Recorder

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