RegAlert2018-10-03
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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GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.-.- Islamabad, the 2nd October, 2018 NOTIFICATION S.R.O. 1194 (I)/2018. __ In exercise of powers conferred by section 512 read with sections 208 and 209 of the Companies Act, 2017 (XIX of 2017), the Securities and Exchange Commission of Pakistan hereby makes the following Regulations, the same having been previously published vide S.R.O. 768(I)/2018 dated 13th June 2018 as required by said section 512 of the said Act, namely:-
- Short title, commencement and application. – (1) These Regulations shall be
called the Companies (Related Party Transactions and Maintenance of Related Records) Regulations, 2018. (2) They shall come into force at once except for regulation 7, which shall come into force on 1st January, 2019. - Definitions.– (1) In these regulations, unless there is anything repugnant in
the subject or context, –
(a) “Act” means the Companies Act, 2017 (XIX of 2017); (b) “Annexure” means annexures appended to these regulations; (c) “key managerial personnel”, in relation to a company, means— (i) the chief executive or the managing director or the manager; (ii) the company secretary; (iii) the whole-time director; and (iv) the chief financial officer; (d) “manager” means an individual who, subject to the superintendence, control and direction of the board, has the management of the whole of the affairs of a company, and includes a director or any other person, by whatever name called, whether under a contract of service or not. (2) Words and expressions used but not defined in these regulations shall, unless there is anything repugnant in the subject or context, have the same meanings as assigned to them in the Act, the Securities Act, 2015 (III of 2015) or the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997). - Conditions for Policy of related party transactions.– (1) Subject to the
requirements of section 208 of the Act, the policy approved by the board shall be subject to the following minimum conditions, namely:-
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Source: Securities and Exchange Commission of Pakistan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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SECP published 3 documents in the last 30 days. We email you each new one the day it's published.