20000207

SECP guidelines for general meetings, proxies

RECORDER REPORT

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has issued guidelines for attending general meetings and appointment of proxies.

According to a notification issued, the shares of a number of listed companies are now being maintained as 'book entry security' on the Central Depository System (CDS) of the Central Depository Company of Pakistan Limited (CDC).

It has come to the notice of the SECP that there is some confusion about the authenticity of relevant documents in the matter of beneficial owners of the shares registered in the name of the CDC for purposes of attending the general meetings and for verification of instruments of proxies.

The issue has been examined and pending the further instructions to be issued in this regard, the following guidelines for the convenience of the listed companies and the beneficial owners are laid down:

The company should obtain list of beneficial owners from the CDC as per regulation number 12.3.5 of the CDC regulations.

In case of individuals, the account holder or sub-account holder or the person whose securities are in group account and their registration details are uploaded as per the regulations, should authenticate his identity by showing his original identity card or original passport at the time of attending the meeting.

In case of corporate entity, the board of directors resolution/power of attorney with specimen signature of the nominee should be produced at the time of the meeting.

In case of individual, the account holder or sub account holder and/or the person whose securities are in group account and their registration details are uploaded as per the regulations, should submit the proxy form as per requirement notified by the company.

The proxy form should be witnessed by two persons whose names, addresses and NIC numbers shall be mentioned on the form.

Attested copies of NIC or the passport of the beneficial owners and the proxy should be furnished with the proxy form.

The proxy should produce his original NIC or original passport at the time of the meeting. In case of corporate entity, the board of director resolution/power of attorney with specimen signature should be submitted along with proxy form to the company.