The Securities and Exchange Commission of Pakistan (SECP) has obtained powers to approve the capital expenditure or disposal of fixed assets of public interest companies, large-sized companies, medium-sized and small-sized companies.
The SECP has issued S.R.O.627(I)/2023 to amend the Companies (General Provisions and Forms) Regulations, 2018 here on Friday.
According to the SECP regulations, in case of a public interest company and a large sized company, the amount of capital expenditure to be incurred on any single item shall be more than Rs 25million and the amount of book value for the disposal of a fixed asset shall be more than five million rupees or one percent of the total assets of the company, whichever is lower.
In case of a medium sized and a small sized company, the amount of capital expenditure to be incurred on any single item shall be more than Rs5million and the amount of book value for the disposal of a fixed asset shall be more than Rs 1 million or one percent of the total assets of the company, whichever is lower. Provided that any amount of an expenditure or disposal not exceeding the aforesaid limits may be approved by a committee constituted by the board comprising at least one director; and the Committee shall submit to the Board on bi-annually basis a post facto report for information.
The board shall have the power to approve the capital expenditure or disposal of fixed assets irrespective of limits as specified.
Any capital expenditure to be incurred on land and building irrespective of the amount, or disposal thereof, may be made only with the approval of the board subject to provisions of sub-section (3) of section 183 of the Act, SECP added.
