ISLAMABAD, Aug 5: Securities and Exchange Commission of Pakistan (SECP) on Tuesday introduced new format of statutory returns for use by the companies for making applications and submissions to the SECP and the Company Registration Offices.

Prescribed in the Companies (General Provision and Forms) Rules, 1985, SECP spokesman explained, the forms had been revamped completely and designed for the convenience of companies, in light of the information technology solutions and the automation already adopted by the SECP.

The new forms have been so designed as to be compatible with the online submission system which the Commission plans to introduce in the near future.

“It is hoped that the new set of forms would facilitate the companies in proper compliance with the statutory requirements and in maintaining the companies’ data and more effective retrieval of requisite information from the database,” he remarked.

Some of the major reforms introduced through the changed forms are as under:

(1) Mode of serving notice/documents: In the past, corporate entities were allowed to send reports/notices/documents to their members utilizing only traditional modes of sending mails i.e. through registered post or under a certificate of posting.

There was persistent demand from the corporate sector that, considering the convenience and promptness of service extended by the courier services, comfort of utilization of courier service should be given legal cover for company communication with its shareholders. The changes in the forms now allow usage of courier facility apart from traditional postal mail.

(2) Documents submitted with application for alteration in memorandum: Keeping in view the practical difficulties of the corporate sector, the relevant rules have been amended to simplify, rationalize and streamline the information/documents to be furnished with application for alteration in memorandum so that the SECP may accord its approval at the earliest.

(3) Company representatives in proceeding before the Commission: Before these amendments in Rules, only a chartered accountant, cost and management accountant or an advocate practising at the level of High Court/Supreme Court could appear in proceedings before the Commission on behalf of the company.

Amendments in the rules now broaden the scope of representation and henceforth the chief executive, company secretary and such other person as possessing the qualification prescribed by the Commission can appear on behalf of the company in proceedings before it. (4) Signatories of the returns submitted with the Commission: Previously, any director of the company was eligible to sign the returns filed by the companies with the Commission. This resulted in filing of disputed returns by different directors. The rules have now been changed to eliminate possible disputes over authenticity of returns submitted by the companies. It has been provided that the returns shall only be signed and submitted by the chief executive or the secretary of a company.

A notification on the changes in rules has been published in the official gazette vide SRO 587(1)/2003 dated July 7, 2003.

The amendments which contain some other useful material have also been placed on the SECP’s website www.secp.gov.pk with download facility for the intended user entities.