Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has issued an advisory to companies, emphasizing the need to comply with the Lawyers Welfare and Protection Act, 2023, specifically regarding the appointment of legal advisors. This advisory highlights the legal obligation for companies with paid-up capital exceeding Rs. 20 million to appoint a legal advisor.
According to Securities and Exchange Commission of Pakistan, Section 10 of the Act mandates that every qualifying company must engage at least one practising advocate on a retainership basis as a legal advisor. The Act further restricts advocates from serving as legal advisors to more than three companies simultaneously. The SECP has instructed companies to report the details of appointed legal advisors on Form-9, in line with Section 197 of the Companies Act, 2017.
The advisory also serves as a warning that the SECP will take action against companies failing to comply with these requirements, as per the relevant legal provisions.