Govt drops member caps for companies

August 12, 2025 (MLN): The Government is set to overhaul the Companies Act 2017 by removing limits on the number of members in private and public companies, introducing greater flexibility in corporate forms, and eliminating unnecessary restrictions to align corporate laws with international best practices.

The reforms were discussed at a high-level meeting of the Sub-Committee on Regulatory Reforms, chaired by the Special Assistant to the Prime Minister, Mr. Haroon Akhtar Khan, on Industries and Production, and attended by representatives from the Board of Investment (BOI), the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan (SBP), and regulatory expert Scott Jacobs.

The SECP and BOI jointly presented the recommendations and highlighted their potential to reduce excessive regulations, cut procedural delays, and boost ease of doing business.

Mr. Khan urged swift drafting of the agreed changes, noting that outdated provisions in the current Act obstruct innovation in corporate structures.

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