The Karachi Stock Exchange Limited’s raising of demand by listed companies pursuant to section 224(2) of the companies ordinance, 1984, for recovery of gain made by directors/ officers/ more than ten percent beneficial owner of equity securities
Karachi, September 25, 2013 (PPI-OT): Pursuant to the provision of sub-section (2) of section 224 of Companies Ordinance, 1984 (“Ordinance”) a listed company is required to raise demand, within the stipulated time limit, for recovery of gain made in terms of sub-section (1) of section 224 of the Ordinance by any director, chief executive, chief accountant, secretary for audited of the listed company or any person who is directly or indirectly the beneficial owner of more than ten percent of its listed equity securities.
2. In some cases where cognizance has been taken by the Commission for not raising demand by the respective tilted company for recovery of the aforesaid gain, it has been placed that the company was not aware about the accrual of the said gain to its respective director, officer, beneficial owner etc.
1. In this regard, it is pointed out that every listed company is required under section 220 of the Ordinance to maintain a register of shareholding in respect of each director, specified officers and every other person holding not less than ten percent of the beneficial interest in the company on the basis of information reported by each director, officer etc, in pursuance of the requirements of section 221 of the Ordinance.
4. In view of the foregoing, the Securities and Exchange Commission of Pakistan is pleased to direct under section 506B of the Ordinance that every listed company shall ensure the maintenance of the register of shareholding mentioned in section 220 of the Ordinance in such a manner, which inter alia may enable the company to raise demand for recovery of the gain mentioned in sub-section (1) of section 224 of the Ordinance.
For more information, contact:
Imran Inayat Butt
Director/ HoD (MSRD)
The Karachi Stock Exchange Limited
Tel: (92-21) 111-001122
Fax: (92-21) 3241 0825, (92-21) 3241 5136
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