Secp Form 24 appointment, resignation, removal

Secp Form 24 appointment, resignation, removal

Form 24 is a statutory form prescribed by the Securities and Exchange Commission of Pakistan (SECP). It is used to inform SECP about any appointment, resignation, removal, or change in the following key positions of a company:

• Directors

• Chief Executive Officer (CEO)

• Chief Financial Officer (CFO)

• Company Secretary

• Auditors

• Legal Advisors

This form ensures that SECP’s public record reflects the current management and legal representatives of the company.

Who Needs to File Form 24?

Every company registered under the Companies Act, 2017 in Pakistan—whether it’s a private limited company, public limited company, or single member company—must file Form 24 whenever there is a change in any of its key personnel.

This includes:

• Appointment of a new director or CEO

• Resignation or removal of an existing director

• Change in designation (e.g., director becoming chairman)

• Appointment or removal of legal advisor, auditor, or company secretary

When Should Form 24 Be Filed?

Form 24 must be submitted to SECP within 15 days of the change being made or approved. For example, if a director resigns on June 1st, the company must file Form 24 by June 16th.

Timely filing is essential to avoid penalties and to keep your company records up to date with SECP.

Why is Form 24 Important?

Filing Form 24 ensures that the official company record held by SECP reflects the accurate and current list of directors and officers. This is critical for:

• Legal compliance

• Opening or updating bank accounts

• Signing agreements and contracts

• Participating in tenders or bidding

• Avoiding disputes in ownership and authority

• Ensuring transparency in corporate governance

A company’s directors are legally responsible for its operations, and any mismatch between SECP’s records and the actual board can lead to complications in audits, financing, or even legal actions.

What Information is Required in Form 24?

To complete and submit Form 24, you’ll need the following:

• Name and incorporation number of the company

• Full name of the director or officer being added, changed, or removed

• CNIC or passport number

• Date of appointment, resignation, or removal

• Nature of change (appointment, resignation, reappointment, etc.)

• Resolution authorizing the change (for appointments or removals)

• Copy of resignation letter (if applicable)

• Consent to act as director or officer (for new appointments)

• Updated list of directors (in case of any change in the board)

How to File Form 24 with SECP

Form 24 can be filed online using the SECP e-Services portal. Here’s a general process:

• Log in with your company credentials

• Select Form 24 from the statutory forms menu

• Fill in all required information accurately

• Attach supporting documents like board resolutions, resignation letters, and CNIC copies

• Generate the challan and pay the applicable fee

• Submit the form electronically

• Receive confirmation and tracking number upon successful submission

Manual filing is also allowed by submitting physical documents to the SECP Company Registration Office (CRO), but e-filing is faster and preferred.

What is the Filing Fee for Form 24?

The filing fee depends on the type of company and its authorized share capital. For most private limited companies, the fee is nominal. You must generate and pay the challan before submission is accepted.

Consequences of Not Filing Form 24 on Time

Failure to submit Form 24 within the 15-day deadline may result in:

• Penalties and fines by SECP

• Legal complications in the event of disputes

• Delays in legal approvals or regulatory clearances

• Inability to conduct certain business operations

• Difficulty in proving authority of directors for official matters

Common Situations That Require Form 24

• A director resigns or passes away

• New director(s) are elected during an AGM

• A CEO or company secretary is replaced

• A legal advisor is newly appointed

• A director is removed through a special resolution

• A director’s term ends and is renewed

Tips for Filing Form 24 Smoothly

• Always keep board resolutions properly drafted and signed

• Collect resignation and consent letters promptly

• Ensure CNICs and personal details are accurate

• File within the 15-day time frame to avoid fines

• Maintain an updated list of directors for easy reference

In Summary

Form 24 is one of the most commonly filed and important forms under SECP regulations. It ensures that any change in the company’s directors or key officers is officially recorded and legally recognized. Whether you’re appointing a new director or your CEO resigns, filing Form 24 within 15 days is essential for compliance and smooth business operations. Always double-check your documentation and never delay reporting changes to the SECP.