The Securities and Exchange Commission of Pakistan (SECP) has taken a major step to ensure corporate transparency by issuing show-cause notices to 28,761 companies for failing to submit ultimate beneficial ownership details. In a statement issued on Thursday, the SECP said these companies have failed to submit the mandatory Form 19 regarding their Ultimate Beneficial Owner (UBO).

A person holding 25% or more shares or voting rights in a company will be considered an Ultimate Beneficial Owner. A person exercising direct or indirect effective control over a company will also be considered an Ultimate Beneficial Owner, the SECP said. Providing ultimate beneficial ownership details is mandatory under the Companies Act, 2017. The relevant companies have been given 30 days to submit Form 19. Companies failing to comply within the stipulated period will face legal action, the SECP said. 

Credit: Independent News Pakistan (INP)