KARACHI, March 1: The Securities and Exchange Commission of Pakistan (SECP) has directed companies to hold the election of directors immediately on expiry of the fixed term of three years.

“The elections can be held in an annual or extraordinary general meeting as the circumstances may warrant,” the apex regulator stated in a circular issued on February 10 and released by the KSE on Wednesday.

The SECP circular noted that the commission through its earlier circular of May 10, 2005 had allowed the companies to hold election of directors in the annual general meetings even before the expiry of the term of their office.

“Election of directors on a date prior to the expiry of fixed term of three years in terms of section 180 of the Companies Ordinance, 1984 has caused certain administrative and legal implications for the companies,” the SECP stated and added that the issue was therefore reviewed and it was decided that the companies should as per section 177 of the Companies Ordinance, 1984 take immediate steps to hold election of directors on due dates, and in case of any impediment report the circumstances of the case to the Registrar of Companies within 15 days of the expiry of the term laid down in section 180. The earlier circular of May 10, 2005 was thereby withdrawn.