gazettle of pakistan summary

1. The gazette of Pakistan extra may 31, 2017.
The booksof account maintainedbythe companywithinPakistan openforinspectionatthe registered
office inPakistanbyanydirectorduringbusinesshours,andinthe case of financial information,if any
maintainedoutside the country,copiesof suchfinancialinformationshall be maintainby director
where aninspectionismade undersub-section(3),the officersandotheremployeesof the company
shall give tothe directormakingsuchinspection of company the booksof account of everycompany
relatingtoa periodof not lessthantenfinancial yearsinanotheryearif a companyfails withanyof the
requirementsof thissection,director
Inspection of books of account by the commission the booksof account and
booksand papersof everycompanyshall be opentoinspectionbyany officertobe recordedinwriting,
the commissionconsidersitnecessarysotodo. It shall be the dutyof everydirector,officerorother
employeeof the company take possession of suchdocumentsandretainthemforthirtydaysif there
are reasonable groundsforbelievingthattheyare evidence of the commissionof anoffence.
Employees’ provident funds, contributory retirement funds and
securities
All moneysorsecurities depositedwithacompanybyitsemployeesof the service withthe company
shall be keptor depositedbythe companywithinfifteendaysfromthe date of depositina special
account to be openedbythe companyfor the purpose ina scheduledbankorinthe national saving
schemes,
financial statements the board of everycompanymustlaybefore the companyinannual
general meetingitsfinancial statementsforthe period,
The financial statementsmustbe laidwithinaperiod 1hundredandtwentydaysfollowingthe close of
financial yearof a company:
Everycompanyshall sendinthe form andmannerspecifiedauditedfinancialstatementstogetherwith
the auditors
Contents of financial statements the financial statementsshall give atrue andfairview
of the state of affairsof the company withthe financial reportingstandards notifiedbythe commission
providedthatforthe purpose of preparationof financial statementsandrelatedaccountingtreatment
of associatedcompany
Duty to prepare directors’ report and statement of compliance.
Provided thatnothinginthissub-sectionshall applytoa private company the commissionmayby
general orspecial order,directsuchclassor classesof companiestoprepare a statementof
Rights of holding company’s representatives and members a holding
companymay,by resolution, authorize representativesnamedinthe resolutiontoinspectthe booksof
account the rightsconferredbysection256 uponmembersof a companymay be exercised

2. Financial statements of modaraba company financial statementsof amodaraba
company,the annual accountsand otherreports of section14 of the modarabacompaniesand
modarabaordinance,1980 of 1981as at the endof the financial yearof the modarabawhere such
financial yearendedwiththe financial yearof the modarabacompany
Approval and authentication of financial statements.
The financial statements, includingfinancialstatement,if any,mustbe approvedbythe boardof the
companyand signedonbehalf of the boardby the chief executive providedthatwhenthe chief
executiveisforthe time beingnotavailableinpakistan,thenthe financial statementsmaybe signedby
at leasttwodirectors
Filing of unaudited financial statements
A private company notbeinga subsidiaryof publiccompany,havingthe paidupcapital notexceeding
one millionrupees
Dividends and manner and time of payment no dividendshall be declared orpaid
by a companyfor anyfinancial year the paymentof dividendin kindshall onlybe inthe formof shares
of listedcompanyheldbythe distributingcompany.
Dividend not to be paid except to registered shareholder
Anydividend declaresbycompanygiventoall shareholdermustbe paidtoall holderswiththe
minimumperiodof
director not to withhold declared dividend
Whena dividendhasbeendeclareditshall notbe lawful forthe directorsof the companyto withholdor
deferitspaymentandthe chief executive of the companyshall be responsible tomake the payment
providedinsection242.
Where the dividendcouldnotbe paidbyreasonof the operationof any law
Establishment of investor education and awareness fund
Investoreducationandawareness fundtobe managedandcontrolledbythe commissionasmaybe
prescribedthroughrules.
(2) the fundshall be creditedwith—
(a) the interest/profitearnedonthe ―companiesunclaimedinstrumentsanddividendandinsurance
benefitsandinvestorseducation account
(b) forfeitedamountsundersub-section(7) of section87of the securitiesact,2015;
(c) the interestorotherincome receivedoutof the investmentsmade fromthe fund;
(d) the amount realized intermsof fourthprovisoof section341 or fourthprovisoof sub-section(4) of
section372; an
(e) suchother amountsasmay be prescribed.

3. (3) the fundshall be utilizedfor
(a) the promotionof investoreducationandawarenessinsuchmannerasmay be prescribed;
(b) withoutprejudice tothe generalityof the objectof sub-clause (a) of sub-section(3),the fundmay
be usedfor the followingpurposes,namely—
Explanation.Investorsmeansinvestorinsecurities,insurance policyholdersandcustomers of non-
bankfinance companiesandmodarabas.
(4) the commissionshall,bynotificationinthe official gazette,constituteanadvisorycommittee with
such membersasmaybe prescribed,forrecommendinginvestoreducationandawarenessactivities
that may be undertakendirectlybythe commission sub-section(3).
(5) the accounts of the fundshall be auditedbyauditorsappointedbythe commissionwhoshall be a
firmof charteredaccountants.The commissionshall ensure maintenance of properandseparate
accounts andotherrelevantrecordsinrelationtothe funds
(6) the commissionmayinvestthe moneysof the fundinsuchmanneras setout insection20 of the
trustsact, 1882 (ii of 1882)
Audit Appointment,removal andfee of auditors.
(1) the firstauditoror auditorsof a companyshall be appointedbythe boardwithinninetydaysof the
date of incorporationof the company
(2) the subsequentauditororauditorsshall be appointedbythe companyinthe annual general
meetingonthe recommendationof the boardafterobtainingconsentof the proposedauditors
(3) a member’s havingnotlessthantenpercentshareholdingof the companyshall alsobe entitledto
propose anyauditoror a has beenobtainedanotice inthisregardhas beengiventothe companynot
lessthansevendaysbefore the date of the annual general meeting
(4) the retiringauditorshall have arightto make a representationinwritingtothe companyat least
twodays before the date of general meeting.Suchrepresentationshall be readoutatthe meeting
(5) the auditoror auditorsappointedbythe boardorthe membersinanannual general meetingmay
be removedthrougha special resolution.
(6) any casual vacancy of an auditorshall be filledbythe boardwithinthirtydaysfromthe date the
conclusionof the nextannual general meeting the boardshall appointthe auditorswithpriorapproval
of the commission.
(7) the remunerationof the auditorsof a companyshall be fixed
(a) bythe companyinthe general meeting
(b) by the board or by the commission,if the auditorsare appointedbythe board
(9) everycompanyshall,withinfourteendaysfromthe date of any appointmentof anauditor,sendto
the registrarintimationthereof,togetherwiththe consentinwritingof the auditorconcerned.

4. Qualifiedfor appointment as an auditor
(a) inthe case of a publiccompanyora private companywhichissubsidiaryof apubliccompanyora
private companyhavingpaidupcapital of three million rupeesormore. Chartered accountanthaving
validcertificate fromthe institute of charteredaccountantsof pakistan
(b) in the case of a companyotherthan specifiedinclause (a),unlesssuchperson,isachartered
accountantor cost andmanagementaccountanthavingvalidcertificate frominstitute orafirmof
charteredaccountantsor cost and management accountants
(2) where apartnershipfirmisappointedasauditorof a company,onlythe partnerswhomeetthe
qualificationrequirementsasprovidedinsubsection(1),shall be authorizedtoactand signon behalf of
the firm.
none of the following persons shall be appointed as auditor of a company, namely
(a) a personwhois,or at any time duringthe precedingthree yearswas,adirector,otherofficeror
employeeof the company
(b) a personwhoisa partner of, or inthe employmentof,adirector,officeroremployee of the
company
(c) the spouse of a directorof the company;
(d) a personwhoisindebtedtothe companyotherthaninthe ordinarycourse of businessof such
entities
(e) a personwhohas givenaguarantee or providedanysecurityinconnectionwiththe indebtednessof
any thirdpersontothe