ISLAMABAD - The Securities and Exchange Commission of Pakistan (SECP) has disposed of 53 show-cause proceedings initiated against companies, their directors and auditors for violating various provisions of the Companies Ordinance, 1984.

The Commission has also initiated 45 fresh show-cause proceedings against the erring management and companies' auditors over various violations of the ordinance.

These violations pertain to failure to comply with legal provisions with respect to holding annual general meetings (AGMs), filing of interim accounts for listed companies, delay in the deposit of provident fund amount, discharge of duties by auditors, presenting false statement in the accounts, advancing loans to associated companies without prior approval by general meeting and extending financial assistance by a listed company for the purchase of shares of its holding company.

The SECP has also finished proceedings of three inquiries conducted against two listed companies under sections 231 and 265 of the ordinance, respectively and appointed inspectors with directions to submit their reports within 60 days on the company affairs.

Similarly, five proceedings against the auditors for not discharging their duties in line with applicable provisions and failing to bring out material facts about company affairs were concluded.

Moreover, two new inquiries have been initiated against auditors.

Besides, 42 warnings were issued to the companies to ensure full compliance with the corporate laws and maintain applicable financial reporting standards.

During June and July, 35 complaints from shareholders of various companies were also addressed.