Knowledge Base

Equity contributions in kind

A brief and temporary amendment in the company law through Presidential Ordinance in 2020 allowed private limited companies to issue shares for consideration other than cash (e.g., plot of land, equipment, asset etc.) as long as the AOA allowed it, special resolution supported it, and as per requirements which were to be set by the SECP. The Presidential Ordinance has since lapsed.

Public companies may still receive equity contributions in-kind, provided SECP-approved valuation processes are followed.