Introduction

The Companies Ordinance was promulgated in 1984 with the objective of achieving healthy growth of corporate enterprises, providing protection to investors and creditors, promoting investment and the development of the economy. In the twenty one years since the law came into force, the Pakistani economy, particularly the corporate sector, has witnessed considerable growth and expansion. The Companies Ordinance has been amended from time to time to cater to the needs of an ever expanding sector. There is however, an urgent need to carry out a holistic examination of the Companies Ordinance in order to assess the relevance of its objectives in the current economic scenario, the adequacy of its provisions and its capacity to allow for balanced growth of corporate enterprises and the extent of its harmonization with international best practices.

To undertake this essential exercise, the Securities & Exchange Commission of Pakistan (SECP) has established the Corporate Laws Review Commission (CLRC) under the able leadership and guidance of Chief Justice of Pakistan (Retd.) Ajmal Mian, and comprising of eminent members of the legal, accountancy and business community.