Regulatory Alerts2018-10-03
Added · Updated
Companies (Related Party Transactions and Maintenance of Related Records) Regulations, 2018
The Securities and Exchange Commission of Pakistan mandates that companies establish a board-approved policy for related party transactions, requiring disclosure of relationship details, pricing, and risk mitigation measures. Boards must approve such transactions based on specific financial and interest disclosures, ensuring they meet arm's length criteria unless conducted in the ordinary course of business. Companies are required to maintain chronological registers of these transactions and director interests at their registered office, providing extracts to members within seven days upon request. These regulations come into force immediately, except for the record-keeping provisions which take effect on January 1, 2019.
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