Draft Amendments to Companies (Further Issue of Shares) Regulations, 2020

GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN NOTIFICATION Islamabad, the 18th March, 2021 S. R. O. 310(I)/2021.- The following draft amendment to the Companies (Further Issue of Shares) Regulations, 2020, proposed to be made by the Securities and Exchange Commission of Pakistan, in exercise of powers conferred under section 512 read with sections 58 and 83 of the Companies Act, 2017 (XIX of 2017), is hereby published for information of all persons likely to be affected thereby and notice is hereby given that comments, if any, received within fourteen days from the date of its publication in the official Gazette and placement on the website of the Commission, shall be taken into consideration, namely:- DRAFT AMENDMENTS In the aforesaid Regulations, - (1) in regulation 6,- (i) existing sub-regulation will be numbered as (1); (ii) clause (iv) of aforesaid sub-regulation (1) shall be omitted; (iii) in clause (v) of sub-regulation (1), for the words “preference shareholders and the Commission”, the words “holders of such shares carrying differential rights” shall be substituted. (iv) after sub-regulation (1), re-numbered as aforesaid, the following sub￾regulation (2) shall be inserted, namely: — “(2) Notwithstanding the requirements of sub-regulation (1), a company may convert its ordinary shares into preference shares or convert its shares (of a particular kind) from one class to another, on the basis of a special resolution:
Provided that the rights of holders of such converted shares are provided for in the articles of association of a company:
Provided further that a share that is not a redeemable preference share when issued cannot afterwards be converted into redeemable preference share.” (2) after Chapter VI, the following new Chapter VIA and regulations shall be inserted, namely: - “Chapter VIA Registration and Valuation” 8A. Registered Valuers. (1) Where valuation is required in respect of any property, stocks, shares, debentures, securities or goodwill or any other assets (herein referred to as the assets) or net worth of a company or its liabilities under the provisions of this Act, the following persons shall be eligible to conduct the requisite valuation: