Companies possessing paid-up capital above Rs. 20 million must retain practising advocates as legal advisors, according to a directive from the Securities and Exchange Commission of Pakistan (SECP), which cautioned that defiant businesses face legal consequences.

Incorporated firms reaching this capital requirement must hire a minimum of one practising advocate on a retainership basis, as outlined in Section 10 of the Lawyers Welfare and Protection Act, 2023.

A single advocate cannot act as a legal advisor for more than three such corporations simultaneously under this legislation.

All eligible businesses received instructions from the SECP to hire legal advisors per the statutory guidelines and report those particulars to the Registrar.

Section 197 of the Companies Act, 2017 requires companies to submit these details using Form-9.

Any enterprise failing to adhere to these statutory rules will face enforcement steps from the regulatory body, the SECP warned.