ISLAMABAD:The Organizations (Amendment) Bill, 2021 was proposed mainly to encourage start-ups, entrepreneurial ventures, and entrepreneurship, as well as to change the quality business climate and ease of doing business (EODB).
According to the Security and Exchange Commission of Pakistan (SECP) annual report, instrumental amendments wide variety from the definition of start-ups, the provision of an exit mechanism through the buy-back of shares by any company, the exemption from filing unaudited financial statements for private firms with insignificant paid-up capital; and the abolition of the company seal to the reduction of the threshold required to give notice of shareholders’ resolution from 10% to 5%.
The National Assembly approved the Financial Institutions (Secured Transactions) (Amendment) Bill, 2020 on June 10, 2021, which, in addition to promising efficient management of the Secured Transactions Registry through delegation of powers from the Federal Government to SECP, aims to extend the scope of the Secured Transaction Act, 2016 to future assets and products, in order to increase access to financial for medium and small organisations.
