KARACHI, Jan 29: A seminar to discuss the Draft Companies (Amendment) Ordinance, 2001 was held at the Institute of Chartered Accountants of Pakistan (ICAP) on Thursday, where Badruddin F. Vellani, a prominent legal expert spoke about the proposed 92 amendments, an ICAP press release stated.

The chief guest was chairman Securities and Exchange Commission of Pakistan, Khalid A. Mirza, while the session chairman was Syed Masoud Ali Naqvi, past president ICAP.

Vellani addressing a packed auditorium of approximately 235 professionals said that approximately half of the proposed 92 amendments related to increase in amount of fines to be imposed, which was understandable, in view of the inflation over the years. However, he failed to comprehend the need for certain other amendments and he elaborated upon his views, the ICAP press note stated.

Suggestions made at the seminar included: (a) definition of financial institution should be compatible with other laws (b) investment in associated companies under section 208 should be subject to a veto power by minority shareholders; (c) conversion of loans and TFCs into equity should be made easier; (d) International Accounting Standards (IAS) should be made applicable to non-listed and private companies (e) companies should be discouraged to hold their AGMs at remote and isolated places (f) proposal for giving SECP the power under section 260 to debar auditors from performing audits should be reconsidered, as internationally this prerogative was with the professional bodies and the court of law.

Mirza in his response to the questions said that he was convinced that most of the practising Chartered Accountants in Pakistan maintained high standards of audit comparable with the best in the world; few that did not comply with the required standards and needed to be checked in the interest of ensuring that correct financial information was published, ICAP press release said, adding that the SECP chairman assured senior participants that he would give due considerations to suggestions made at the seminar and to any other suggestions that may be received directly.