SECP mandates legal advisors for Pakistani companies with capital over Rs20 million

The Securities and Exchange Commission of Pakistan (SECP) has directed all incorporated companies with paid-up capital exceeding Rs20 million to appoint at least one practising advocate as a legal adviser on a retainership basis.

This directive follows Section 10 of the Lawyers Welfare and Protection Act, 2023. To prevent overextension, the law stipulates that a practising advocate may serve as a legal adviser to no more than three qualifying companies simultaneously.

Eligible companies are required to formally report the details of their appointed legal advisers to the Registrar using Form-9, as prescribed under Section 197 of the Companies Act, 2017. The SECP has warned that failure to comply with these statutory obligations may result in legal action and enforcement proceedings.