20000325

Annual general meetings'

SECP won't allow time extension on computer failure

RECORDER REPORT

ISLAMABAD: The Securities and Exchange Commission of Pakistan will not allow extension in the date of holding annual general meeting of any listed company on the ground of breakdown in the computer software.

This decision was taken on Friday while examining the application for extension of AGM of a company.

The SECP was of the view that on this 'flimsy' excuse a number of companies were delaying their annual general meetings.

A circular issued by Commissioner of Enforcement says that Section 158 of the Companies Ordinance 1984 provides for the period within which annual general meetings of the companies are to be held. In the case of listed companies, the period so prescribed may be extended by the Securities and Exchange Commission up to 90 days for any special reason.

It has been noticed that some of the listed companies apply for grant of extension in the prescribed period for holding their annual general meetings on the grounds that due to breakdown in their computer software the accounting data has been deleted and they needed further time for re-feeding the data so as to compile their accounts.

The case has been examined and it has been decided that the breakdown of computer software etc. would not be accepted as a "special reason" in terms of the proviso to sub-section (1) of said section 158 and the requests of the companies for seeking the extension in the period for holding the AGMs on the above grounds would not be acceded to.

The Commission says that all the listed companies are advised to keep the back-up files of data in their own interest so as to compile their annual accounts in time.