The Securities and Exchange Commission of Pakistan (SECP) has warned companies with paid-up capital exceeding Rs. 20 million to appoint practising lawyers as legal advisors or face legal action for non-compliance.

Under Section 10 of the Lawyers Welfare and Protection Act, 2023, every incorporated company meeting this capital threshold must retain at least one practising advocate as its legal advisor.

The law also restricts a practising advocate from serving as a legal advisor to more than three companies covered by this requirement at the same time.

The SECP has directed eligible companies to make the required appointments and submit their legal advisors’ details to the Registrar. Companies must provide this information through Form-9 under Section 197 of the Companies Act, 2017.

The regulator has warned that companies failing to meet the legal requirements could face action under the applicable laws.

The directive requires all companies falling within the specified capital limit to ensure that their legal advisor appointments and regulatory filings comply with the prescribed rules.