LAHORE, Jan 10: The Securities and Exchange Commission of Pakistan (SECP) proposes to amend the Companies Ordinance 1984 to introduce a new concept of single member private company to admit the individual business in the corporate sector.

SECP officials in Lahore told Dawn here on Thursday that under the proposed change in the law, an individual trader or manufacturer would be able to form a company having its own separate entity and limited liability as was being practised in the UK. “It would not only be beneficial to the investors but also go a long way in the expansion of a disciplined corporate sector,” the officials said.

The SECP also plans to reduce the minimum number of members and directors in a public company to three from the existing seven. According to the existing provisions of the law, the promoters who want to establish public companies are facing difficulties in associating other persons in the list of promoters and directors just to complete the requirements of minimum seven.

Another important amendment being proposed by the SECP would allow the removal of auditors through special resolutions. However, the appointment of new auditors would have to be made with the approval of the SECP.

The officials said the SECP was consulting the experts, the stock exchanges and the corporate sector on the proposed amendments to elicit their opinion and change the law in their light.