President signs Companies Act 2017, replaces Companies Ordinance 1984
ISLAMABAD: President Mamnoon Hussain on Tuesday signed the Companies Act, 2017 replacing the three-decades old Companies Ordinance Act, 1984.
The new law will facilitate the growth of economy in general and the corporate sector in particular by providing simplified procedures for ease of starting and doing businesses, greater protection of investors.
It will boost corporatisation in the country. It will also provide a simpler and softer regime for small companies, enable e-governance, augment standards of transparency and quality of information, and ensure better corporate governance.
The enactment of the Companies Act 2017, is one of the most significant legal reforms in the country. It is aimed at bringing the company law on a par with global standards.
Companies Act 2017 is one of the most detailed and comprehensive acts of law which took over twelve years to formulate. It contains an overwhelming 515 clauses and eights schedules.
The companies bill was presented in the National Assembly on November 18, 2016. It was passed on February 6, and from Senate on May 15 and had now been promulgated into law.