ISLAMABAD, May 30: President Mamnoon Hussain signed the Companies Act, 2017 on Tuesday, marking the dawn of a new era that promises great opportunities for the corporate sector to thrive in a challenging global environment.
After thorough public consultation and legal vetting by Ministry of Law and Justice, the Companies Bill was introduced in the National Assembly on November 18, 2016. On February 6, the National Assembly passed the Companies Bill, 2017. Finally, the Senate it on May 15. The level of stakeholder consultation by the SECP during the drafting and approval stages was unprecedented in the history of company law in Pakistan.
The enactment of the Companies Act, 2017, is one of the most significant legal reforms in the country. It is aimed at bringing the company law on a par with global standards. The Act has introduced significant changes to the company law. It is the longest and one of the most exhaustive pieces of legislation ever approved by Pakistani parliament. It has 515 sections and eight schedules, and took almost 12 years in the making. It is an embodiment of parliamentary democracy in Pakistan and a gift to the nation.
The new law will facilitate the growth of economy in general and the corporate sector in particular by providing simplified procedures for ease of starting and doing businesses, greater protection of investors. It will give a boost to corporatization in the country. It will also provide a simpler and softer regime for small companies, enable e-governance, augment standards of transparency and quality of information, and ensure better corporate governance.