March 22, 2024 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued a notification specifying the time, manner, and conditions for payment of subscription money, payable by a subscriber in accordance with his undertaking in the memorandum of association against subscribed shares.
The notification issued in terms of Section 17 of the Companies Act, 2017 states that the subscription money is payable in cash through the banking channel, immediately after incorporation of the company, but not later than a period of thirty days from the date of incorporation.
The issuance of shares by the company is contingent on the full subscription money received from each subscriber.
"If there are any issues with the receipt of subscription money, the company will proceed according to the Registrar's direction," it states.
SECP said that any contravention or default in complying with the requirements of the notification or the direction issued by the registrar will be liable to appropriate action in terms of relevant provisions of the Companies Act, 2017.
