SECP warns companies of action over failure to appoint legal advisers

The Securities and Exchange Commission of Pakistan (SECP) has told incorporated companies with paid-up capital above Rs20 million to retain a legal adviser and report the appointment, Profit by Pakistan Today reported on October 23. The obligation comes from Section 10 of the Lawyers Welfare and Protection Act, 2023, and applies to firms above the stated capital threshold.

Companies must send the adviser’s details to the registrar using Form-9, as required by Section 197 of the Companies Act, 2017. The law requires the adviser to be engaged on a retainership basis, while an advocate cannot serve more than three qualifying companies at the same time. The SECP has warned that it can proceed under applicable laws against companies that do not comply with the appointment and filing requirements.