ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has invited public comments on draft amendments to the Companies (Further Issue of Shares) Regulations, 2020, aimed at streamlining the issuance of shares with different rights by listed companies while ensuring transparency, minority shareholder protection, and stronger corporate governance.
Under the proposed changes, shares carrying voting rights will also be entitled to dividends a measure designed to align economic benefits with voting power and minimize conflicts of interest. The draft also stipulates that the combined voting power of ordinary shares, based on the principle of “one share, one vote,” must not fall below 75 percent of a company’s total voting power.
To prevent concentration of control, the SECP has proposed capping the voting power of varied-rights shares at five votes per share. Moreover, all such ordinary shares with varied rights would be required to be listed on the stock exchange.
The draft has been prepared following extensive consultations with stakeholders including the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), National Clearing Company of Pakistan (NCCPL), listed companies, law firms, consultants, and financial experts. Their feedback on an earlier consultation paper — received through written submissions and multiple consultation sessions — has been incorporated into the draft.
The SECP has now published the amendments for a final round of public input before converting them into binding regulations.
