ISLAMABAD, Oct 02 (APP): The Securities and Exchange Commission of Pakistan (SECP) has sought public comments on a proposed accreditation framework for official liquidators, provisional managers and insolvency experts.
The framework proposes measures to improve the handling of corporate liquidation and rehabilitation proceedings under the Companies Act, 2017, and the Corporate Rehabilitation Act, 2018.
Its objective is to build a pool of qualified professionals to manage the winding up of companies and support the rehabilitation of financially distressed businesses, said a press release issued by the SECP on Friday.
The measures are expected to make these proceedings more efficient and transparent, protect creditors’ interests and help viable companies recover.
Under the proposal, practitioners seeking empanelment as official liquidators and insolvency experts as well as those already empaneled by the Commission would be required to obtain a professional certification in insolvency practice from the Institute of Financial Markets of Pakistan (IFMP).
The three-stage programme would include written and oral examinations, along with annual continuing professional development requirements.
The proposal also includes a code of conduct for official liquidators and provisional managers, who perform an interim role in proceedings.
The proposed measures address capacity gaps identified in the World Bank’s 2022 Report on the Observance of Standards and Codes and draw on practices in the United Kingdom, Singapore, Malaysia and India.
Source: APP (Associated Press of Pakistan)
