GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

Islamabad, April 6, 2021

NOTIFICATION

S.R.O.449(I)/2021. - The following draft amendments to the Companies (General Provisions and Forms) Regulations, 2018, proposed to be made by the Securities and Exchange Commission of Pakistan, in exercise of powers conferred under section 512 of the Companies Act, 2017 (XIX of 2017), are hereby published for information of all the persons likely to be affected thereby and notice is hereby given that comments, if any, received within fourteen days of the date of this notification will be taken into consideration by the Securities and Exchange Commission of Pakistan, namely:-

DRAFT 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 size and a small size 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 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.

Save as provided in the aforesaid proviso, it is further provided that any amount of an expenditure or disposal not exceeding the aforesaid limits may be approved by a committee constituted by the board comprising the chief executive officer, the chief financial officer, and at least one member of the board of directors under the general or specific authority of the board.

[File No. CLD/CCD/PR(17)/2017]