The Federal Board of Revenue (FBR) has issued an illegal notification on the restructuring and revitalization of Pakistan Revenue Automation Limited (PRAL) without the approval of the majority shareholders.
The FBR has constituted sub-groups for the restructuring and revitalization of Pakistan Revenue Automation Limited (PRAL). Later, the FBR issued a notification on the constitution of sub-groups for the restructuring and revitalization of PRAL.
Experts informed that the PRAL is a public sector company governed by corporate governance rules having an independent board of directors with independent directors to run the company. The FBR being a shareholder though has directors on the board.
Therefore, the decisions of running the company are made by the board of directors. No such notification can be issued without the approval of the board of directors. The FBR has four directors and 7 independent directors. the decision would taken by the majority of the board of directors of the public sector company.
The FBR is a shareholder in the company, but cannot override the majority of the independent board of directors.
Source: Pro Pakistani