SALIENT FEATURES OF COMPANIES ORDINANCE 2016

Companies Ordinance, 2016, had been promulgated in order to encourage and facilitate
best international corporate practices in country.
The ordinance has been promulgated in order to replace the Companies Ordinance, 1984
The ordinance was promulgated after extensive consultations with all stakeholders and
contains provisions for simplifying the procedure for incorporation of companies,
enabling maximum use of technology, conversion of physical shares into book-entry
form in unlisted companies and encouraging paperless environment at all levels.
to ensure maximum participation of members in the decision making process of the
company, the Companies Ordinance, 2016, encourages use of modern electronic means
of communication
the Companies Ordinance, 2016, also includes provisions for Shariah certifications of
companies and requirements for real estate companies for providing enhanced protection
to the investor
Companies Ordinance, 2016, provides protection to independent and non-executive
directors to encourage inclusion in the board, as well as provisions for manner of
selection and maintenance of data bank of independent directors
addresses the issues relating to protection of interest of minority shareholders and
creditors
It also introduces other reforms such as relaxations for free zone companies, registration
of agricultural promotion companies for the development of agricultural sector, and the
establishment of Investor Education and Awareness Fund
The ordinance features provisions for registration of valuers, dispute resolution
mechanism through mediation and conciliation panel, passing of members' resolution
through circulation, as well as simplified provisions for expeditious mergers and
acquisitions.
The Companies Ordinance, 2016, emphasizes maximum disclosures by Pakistanis to the
local regulatory authorities in respect of investment in foreign companies.
Provides facilitation and regulation of public sector enterprises.
he Companies Ordinance, 2016, the Securities and Exchange Commission of Pakistan
(SECP) will maintain a 'Companies' Global Register of Beneficial Ownership', which will
have complete record of the beneficial ownership of the substantial shareholders and
officers in local and foreign companies doing business in Pakistan
Companys ordinance Pakistan will be binding on the foreign company operating in
Pakistan to provide complete information of its directors, officers and/or beneficial
owners.
The ordinance empowers the SECP to investigate and also conduct joint investigation.
 Companies Ordinance, 2016, has been promulgated to provide relief and incentives to the
corporate sector, especially small and medium sized companies, in order to give
immediate impetus to the economy and stimulate economic growth.
the new ordinance would reduce the cost of incorporating and doing business, which
would enable Pakistan's corporate sector to be competitive in the international markets.