Revise the definition of related parties and manager
Reform IDF373
DescriptionRevision of the definitions of “related parties” and “manager” under Section 208 of the Companies Act 2017 has been proposed, as their broad scope leads to inconsistent interpretations and excessive reporting obligations, while international best practices under IAS 24 limit such definitions to directors, senior management, and substantial shareholders to ensure clarity and material relevance.
DepartmentSecurities and Exchange Commission of Pakistan (SECP)
Jurisdiction / LocationFederal - Entire Pakistan
SectorFinancial Services
Start Date24-06-2025
Target Deadline24-09-2025
Date Enacted
Implementation StatusIn Progress
Progress 50%
CCORR DirectionSimplify
Cost Savings PKR (Mil.)
Evidence