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  • Jul 5th, 2015
  • Comments Off on Easy Exit Scheme: Companies must declare non-involvement in real estate deals: SECP
The companies that intend to avail the Easy Exit Scheme of the Securities and Exchange Commission of Pakistan (SECP) would have to declare that the company has not undertaken any business of housing, real estate development or real estate marketing since its incorporation. Under the SR.O.624(l)/2015 of the SECP, the companies desirous of striking their names off the register of companies be required to declare that company has not undertaken any business of housing, real estate development or real estate marketing since its incorporation.

Under the SRO, the commission has proposed draft amendment to the Companies (Easy Exit) Regulations, 2014. The amendments are hereby published for the information of all those likely to be affected thereby and notice is hereby given that comments, if any, received within 14 days of the date of this notification shall be taken into consideration. The Companies (Easy Exit) Regulations, 2014 apply to private and public non-listed companies including associations not for profit licensed under section 42 of the Companies Ordinance 1984, which are not carrying out business and not in operation and desirous to strike their names off the register of companies in term of section 429 of the said Ordinance, but shall not apply to the specified companies.

The SECP has proposed amendments in two forms which have included clauses that, "the Company has not undertaken any business of housing, real estate development or real estate marketing since its incorporation." The SECP has proposed amendment in Form EE-III about the declarations and indemnity. The SECP has also proposed amendments in the Form EE-IV on the Auditor's Certificate.

Following is the text of the notification issued by the SECP:

DRAFT AMENDMENTS in the aforesaid Regulations.-

(1) In FORM EE-III, after para 5, the following new para shall be inserted, namely:

"5A. That the Company has not undertaken any business of housing, real estate development or real estate marketing since its incorporation."

(2) in FORM EE-IV,

(a) in clause (h). the word "and" appearing at the end shall be omitted;

(b) in clause (c), for the full stop "." at the end the semi colon and word"; and" shall be substituted; and

(c) after clause (c), amended as aforesaid the following new clause shall be inserted, namely:

"d. the Company has not undertaken any business of housing, real estate development or real estate marketing since its incorporation.", it added.

Copyright Business Recorder, 2015


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