A meeting of the Senate Standing Committee on Finance, Revenue and Economic Affairs was held on Tuesday to further discuss The Limited Liability Partnership (Amendment) Bill, 2020 and The Companies (Amendment) Bill, 2020. The Committee was briefed in detail by Senator Musadik Masood Malik, convener of the Sub-Committee constituted on Monday, about the deliberations and briefing by the SECP as to the meanings of the terms direct and indirect control, ultimate beneficial owner among others as mentioned in both acts.
The Sub-Committee was told that any person who directly through himself/herself or indirectly through his spouse, children or any company maintains 25% ownership of a company comes under the category of being termed as the ultimate beneficial owner of the company and the obligation of maintaining his name in the register falls with the company itself otherwise penalties can be imposed. Similarly any person who has value shares or has power over appointment of board of directors (among other instruments) is considered to be exercising control over the company directly or indirectly. The Sub-Committee was alos given an undertaking by SECP that although the threshold of 25% is not mentioned in the law, it will be specified in the regulations made by SECP. Similarly an undertaking was given that the terms of ‘five years’ for maintaining records for companies in case of dissolution will be followed and won’t be changed. The Limited Liability Partnership (Amendment) Bill could not be discussed because of paucity of time.
The Standing Committee that met with Senator Farooq Hamid Naek in the chair deliberated further on the bill and observed that while The Companies (Amendment) Bill has the mention of these definitions in the relevant section, The Limited Liability Partnership (Amendment) Bill does not have the same. Similarly, members also discussed the efficacy of undertakings in comparison to actual amendments that can be brought and made part of the bill.
A vote was held to make a decision as to whether amendments seeking further clarity into the definitions and specifying the percentage of ownership should be added to the bill or not. 4 members voted in favour of the amendments while 3 voted against them. Consequently it was decided that amendments shall be brought in House.
The meeting was attended among others by Senator Sherry Rehman, Musadik Malik, Dilawar Khan, Zeeshan Khanzada, Imamuddin Shauqeen, Mohsin Aziz, Additional Secretary from the ministry, Director General FATF Pakistan, Chairman SECP, Legal Advisor SECP.