Regulatory Alerts2024-02-19
Added · Updated
Circular No. 5 of 2024 – Term of the office of Independent Director under sub section (2)(g) of Section 166 of the Companies Act, 2017
The Securities and Exchange Commission of Pakistan clarifies that a director filling a casual vacancy for the remainder of a term is considered appointed for a complete term. This interpretation applies to the calculation of the maximum three consecutive terms allowed for independent directors under Section 166(2)(g) of the Companies Act, 2017. All non-compliant companies must adhere to this requirement and report their compliance to the Commission within sixty days of the circular's issuance.
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