The Securities and Exchange Commission of Pakistan (SECP) have proposed, subject to consultation with stakeholder, amendments for the purpose as follows:-

• To create a balance between the rights of the minority shareholders and the investors.


• To eradicate the procedural conflicts between the takeover regulations and the takeover laws.

The said amendments would likely suggest the following:-

• The valuer of the property would also be accountable in case of litigation or inquiry against the acquirer.


• Fixing responsibilities of a valuer and penalties if the value of fixed assets including the infrastructure is determined by him at a lower then market rate.


• The change in the offer size (i.e. up to 50 per cent of shares under the current law) to purchase the shares held by the individual shareholders, which the acquirer is bound under law to place under the public offering.


• Easing the procedures to change the manager to the offer if required by the acquirer so that the transaction can be made more transparent.


• New measures of ‘chain acquisition’.

The above amendment proposal/summary, after consultation before roundtable of stakeholders, will be forwarded by SCEP to the Ministry of Finance, who will take necessary measures in making legislation.

The takeover law was introduced in 2002 as presidential Ordinance, which offered little consideration to the minority shareholders during takeover. Later the amendments in 2008 proved very harsh to the acquirers. Hence the law always remained unbalance –tilting the consideration towards opponent stakeholders from time to time. My Research Paper in 2010 covered thorough consideration on the issue, along with International comparative laws on matter, criticism and recommendations. The said paper may be accessed at IIUI Library in Islamabad.

-Tariq Rasheed Qamar, advocate H/C, Multan