Amendments to the Companies (General Provisions and Forms) Regulations, 2018

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Islamabad, the 22nd May, 2023 NOTIFICATION S.R.O.627(I)/2023. – In exercise of the powers conferred by sub-section (1) of section 512 read with section 183 of the Companies Act, 2017 (XIX of 2017), the Securities and Exchange Commission of Pakistan is pleased to make the following amendments to the Companies (General Provisions and Forms) Regulations, 2018, the same having been previously published vide S. R. O. 449(I)/2021, dated April, 06, 2021, namely: - AMENDMENTS In the aforesaid Regulations, after regulation 20, the following new regulation shall be added, namely: - “20A. Approval of capital expenditure and disposal of assets by the board. - For the purpose of clause (i) of sub-section (2) of section 183 of the Act:
(a) in case of a public interest company and a large sized company, the amount of capital expenditure to be incurred on any single item shall be more than twenty￾five million rupees; and the amount of book value for the disposal of a fixed asset shall be more than five million rupees or one percent of the total assets of the company, whichever is lower; and (b) in case of a medium sized and a small sized company, the amount of capital expenditure to be incurred on any single item shall be more than five million rupees and the amount of book value for the disposal of a fixed asset shall be more than one million rupees or one percent of the total assets of the company, whichever is lower. Provided that any amount of an expenditure or disposal not exceeding the aforesaid limits as provided in clause (a) and (b), may be approved by a committee constituted by the board comprising at least one director; and the Committee shall submit to the Board on bi-annually basis a post facto report for information; and (c) the board shall have the power to approve the capital expenditure or disposal of fixed assets as provided in clause (a) and (b) above irrespective of limits as specified above. (d) any capital expenditure to be incurred on land and building irrespective of the amount, or disposal thereof, may be made only with the approval of the board subject to provisions of sub-section (3) of section 183 of the Act. [File No. CLD/CCD/PR(17)/2017]