The Securities and Exchange Commission of Pakistan has issued show cause notices to 28,761 companies for failing to submit mandatory details of their ultimate beneficial owners, in a major move to strengthen corporate transparency.
The SECP said the companies had failed to submit Form 19, which is required for reporting information about ultimate beneficial owners under the Companies Act, 2017.
Under the regulatory requirements, a person holding 25 percent or more of a company’s shares or voting rights is considered an ultimate beneficial owner. A person who exercises direct or indirect effective control over a company is also treated as an ultimate beneficial owner.
The SECP said providing details of ultimate beneficial owners is mandatory under the Companies Act, 2017. The requirement is aimed at improving corporate transparency and identifying the individuals who ultimately own or control companies.
The companies receiving notices have been given 30 days to submit Form 19 and comply with the requirement.
The SECP warned that companies failing to comply within the given period will face legal action under the applicable law.
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