AMENDMENT IN SUBSECTION (5) OF SECTION 205 AND SECTION 439 OF THE COMPANIES ORDINANCE, 1984

AMENDMENT IN SUBSECTION (5) OF SECTION 205 AND SECTION 439 OF THE COMPANIES ORDINANCE, 1984 <!--[if gte mso 10]> AMENDMENT IN SUBSECTION (5) OF SECTION 205 AND SECTION 439 OF THE COMPANIES ORDINANCE, 1984 By Mr. Qamar-ul-Islam, Advocate, Karachi In spite of the fact that a public company within 45 and private within 30 days is required to file Form A under subsections (3)(a) and (b) of section 156 of the Companies Ordinance, 1984, wherein existing as well as changes in share holdings, director(s), Chief Executive, auditor (s), legal advisor (s) Secretary and Chief Accountant etc. with Registrar. Still Securities Exchange Commission of Pakistan now demands simultaneously to The Form 29 within 14 days under subsection (5) of section 205 of the Companies Ordinance, 1984. Under the Companies Act, 1913 Form `E' which is now Form 'A' under Companies Ordinance, 1984, was required to be filed within 21 days and Form XII within 14 days. For some time even for Companies Ordinance, 1984 the Form was Form XII, which is now Form 29. Time for filing Form `A'/(E) it is seen is increased from 21 days to 30 and 45 days respectively but surprisingly date for filing Form 29/(XII) has been maintained at 14 days thereby both companies, their secretaries, Directors, Advisors, Auditors and Registrar are engaged twice, which working system also results in various types of mistakes and hardships. It is, therefore, suggested that the amendments in subsection (5) of section 205 of Companies Ordinance, 1984 be made to allow filing of Form 29 also within 30 days for private and within 45 days for public companies respectively. Circular No.7 of 2002, dated April 1, 2002 of Securities Exchange Commission of Pakistan, needs amendments, whereby presently Commission is demanding Rs.3,500 from Private Limited and Rs.7,500 from unlisted companies, Associations under section 42 Gaurantee companies under section 43 for Companies Easy Exist Scheme (CEES) to strike the name of the Company off the register of companies under section 439 of the Companies Ordinance, 1984. Under section 439 Registrar as it's duty is to strike off the name of inoperative companies after completing the requirement laid down therein, which do not involve any payments by the companies and certificates from auditor, thus it will be seen that Companies Easy Exist Scheme (CEES) has been made more difficult and expensive, on publicity of which Scheme a huge amount is being spent by Commission. It is, therefore, suggested, that the condition to pay Rs.3,500 and Rs.7,500 by respective companies as prescribed under paragraph `c' of the said circular be waived, it is also suggested that in the condition of certificate from auditors as said under paragraph `f' of the said circular with practising chartered accountants or a practising Cost and Management Accountants conditions of paid-up capital as prescribed in section 257 of the Companies Ordinance, 1984 be also inserted. Looking to deteriorating performances, misconduct and connivance of leading practising firms of Chartered Accountants in particular and other practising firms of Chartered Accountants in general, frequent publications in daily newspapers, professional Journals, Institute of Chartered Accountants own journals the Pakistan Accountant', judgments of Hon'able Courts of Pakistan about their monoplies, lapses, exhorbitant fee charged under various heads and audits, all and every type of misconduct done under the nose of Institute of Chartered Accountants of Pakistan and Securities and Exchange Commission of Pakistan. Rather in present scenario the big firms on one hand deliberately committing misconducts, in race of acquiring all big and small audits, alleging misconduct on small practising firms, big firms acquiring simultaneously consultancy and advisory, management consultancy, it is, therefore, suggested that check and embargo be imposed on all big top ten firms of practising chartered accountants and necessary amendment in section 257 of the Companies Ordinance be made whereby other professional certificates i.e. Chartered Certified Accountants, C.P.A. etc. are also recognized and allowed audits and further door is open to recognise other certificates as is practised in most of developed countries and developing countries. LETTER FROM MUHAMMAD SHARIF, SHARIF & COMPANY, SAHIWAL TO CHAIRMAN, CENTRAL BOARD OF REVENUE (Filing of Income Tax Returns for the Assessment Year 2003-2004) [3rd April, 2003] The Chairman, Central Board of Revenue, Constitution Avenue, Islamabad SUBJECT:- FILING OF INCOME TAX RETURNS FOR THE ASSESSMENT YEAR 2003-2004. Respected Sir, With due respects it is submitted that Returns of Total Income are to be filed in terms of section 114 of the Income Tax Ordinance, 2001 on the prescribed Forms on or before the fixed dates as per section 118 of new Ordinance. Your honour on going through the Rules 2002 as framed under S.R.O. 428(I)/2002, it transpired that according to Second Schedule the Returns are to be furnished as indicated in rules 190(1) to 190(4) of the Income Tax Rules, 1982. In these Rules section 55 has been mentioned whereas the Returns are to be filed under Income Tax Ordinance, 2001 but in the Second Schedule or in the rules 34, 35, 36 and 39 are silent about any charge or modification in format prescribed under old Rules. It is, therefore, suggested that necessary clarification in this respect may kindly be issued so that the Income Tax Practitioners/Advocates may be able to get the modified Return Forts printed well before the fixed time. Similarly modification desired for Wealth Statement as per Old Rule 191 be clarified. Thanking you in anticipation.