SECP caps voting rights, mandates dividend parity in key regulatory update

December 22, 2025 (MLN):  The Securities and Exchange Commission of Pakistan (SECP) has made key amendments to the Companies (Further Issue of Shares) Regulations, 2020, that focuses on the issuance of shares with different rights and privileges by listed companies.

The changes are aimed at protecting minority shareholders, promoting transparency, and ensuring robust corporate governance, said a press release issued.

Under the notified amendments, ordinary shares carrying voting rights will receive the same percentage of dividends per share, and the aggregate voting power of all ordinary shares will constitute at least 75% of a company’s total voting power, which adheres to the ‘one share, one vote’ principle.

Shares with varied voting rights will now be capped at a maximum of five votes per share, and ordinary shares with differential rights must be issued as listed securities.

The SECP stated that the revisions are designed to align economic benefits with voting rights, minimize potential conflicts of interest, prevent undue concentration of control, and promote equitable governance.

These amendments follow extensive consultations with stakeholders, including the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan Limited (NCCPL), listed companies, consultants, professional associations, and law firms, whose feedback was carefully reviewed before finalization.

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