Companies (Amendment) Bill, 2021 to promote EODB.

ISLAMABAD -- The Companies (Amendment) Bill, 2021 was primarily proposed to promote start-ups, business innovation and entrepreneurship, improve general business climate and promote Ease of Doing Business (EODB).

According to the Security and Exchange Commission of Pakistan (SECP) annual report, instrumental amendments ranging from definition of start-ups, provision of exit mechanism through buy-back of shares by any company, exemption from filing of unaudited financial statements for private companies having insignificant paid-up capital; and abolishament of company seal to the change in threshold from 10% to 5% required to give notice of shareholders' resolution, aiming at protecting interests of minority shareholders, as well as abolishment of requirement to mention husband's name by a married woman for registration of a company (in line with World Bank's Women, Business and Law Report), are expected to secure further up-gradation in upcoming Ease of Doing Business Report by the World Bank.

On June 10, 2021, the National Assembly approved the Financial Institutions (Secured Transactions) (Amendment) Bill, 2020, which, besides promising efficient administration of Secured Transactions Registry through delegation of powers of Federal Government to SECP, aims to extend the scope of the Secured Transaction Act, 2016 to future assets and products, in order to enhance access to finance for small and medium sized entities. These amendments are expected to substantially improve Pakistan's ranking in the Getting Credit' indicator in the World Bank's Ease of Doing Business Index, report said.

In March 2021, Pakistan significantly improved its score on the...