Hi Everyone! Hope you are all doing well. Welcome back to another blog. Today we will talk about everything you need to know about SECP Updates Companies Rules. SECP approves capital expenditure or disposal of fixed assets for public interest companies, large-sized companies, and medium-sized and small-sized companies. In a recent development, the SECP issued S.R.O.627(I)/2023, introducing amendments to the Companies (General Provisions and Forms) Regulations, 2018. On Friday, SECP enacted regulatory changes. These changes empowered them to review and sanction the allocation of funds or sale of assets for companies.
SECP regulations require capital expenditure of more than Rs 25 million for public interest or large-sized companies. Book value for fixed asset disposal should be greater than Rs 5 million or 1% of total assets. Regulations ensure proper financial management and transparency.
SECP has recently introduced an amendment stating that the board of directors possesses the power to approve capital expenditure or disposal of fixed assets, regardless of any specified limits. It is important to note that this approval is subject to the provisions outlined in subsection (3) of section 183 of the Act.
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