Key points
- Companies failed to disclose ultimate beneficial owners
- Firms given 30 days to submit mandatory Form-19
- Non-compliance may trigger legal action
ISLAMABAD: Pakistan’s corporate regulator has issued show-cause notices to 28,761 companies for failing to disclose details of their ultimate beneficial owners (UBOs), in a major move to strengthen corporate transparency and ownership reporting.
The Securities and Exchange Commission of Pakistan (SECP) said the companies had failed to submit the mandatory Form-19, containing information about their ultimate beneficial owners as required under the Companies Act, 2017.
Under Pakistan’s corporate law, a person who holds 25 per cent or more of a company’s shares or voting rights is considered an ultimate beneficial owner.
The definition also covers a person who exercises effective control over a company, either directly or indirectly.
The SECP said disclosure of ultimate beneficial ownership was a mandatory requirement designed to ensure transparency over who ultimately owns or controls companies registered in Pakistan.
Pakistan regulator sets 30-day deadline
The regulator has given the affected companies 30 days to submit Form-19 and fulfil the applicable legal requirements.
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Companies that fail to comply within the prescribed period will face legal action under relevant provisions of the Companies Act, the SECP said.
The move forms part of Pakistan’s broader efforts to strengthen corporate governance and improve transparency around ownership and control structures.
For international businesses and investors, beneficial ownership disclosure is an important component of corporate transparency frameworks, helping regulators establish the individuals who ultimately own, control or benefit from companies.
The SECP’s action signals a renewed enforcement focus on ensuring that companies operating under the country’s corporate framework maintain and submit accurate ownership information.
