The Securities and Exchange Commission of Pakistan (SECP) vide its S.R.O. 229 (I)/2021 dated February 18, 2021 has proposed the following changes in section 3 of the Companies (Distribution of Dividends) Regulations 2017 (the Regulations). According to the Regulation, before the draft amendment, the chief executive officer of every company is responsible to make the payment of cash dividend within a period of fourteen working days from the date of its declaration.”
Now after the approval of draft amendment, subject to section 243 of the Act, the chief executive officer of every company is responsible to make the payment of cash dividend, within a period of three working days from the date of its approval by the:
- Shareholders in general meeting, in case of final dividend; and
- Board, in case of interim dividend.”