Lahore: Pace (Pakistan) Limited is set to hold a crucial meeting on October 28, 2026, where shareholders will vote on proposed resolutions concerning the company's related party transactions. W.S Engineering (Pvt.) Limited, which holds a 9.64% stake in the company, has issued a notice for these resolutions, as per the guidelines of Section 140 (2) of the Companies Act, 2017.

The meeting will address the ratification and approval of transactions carried out by Pace (Pakistan) Limited with related parties for the fiscal year ending June 30, 2026, and the transactions planned for the financial year ending June 30, 2027. The resolutions propose that the company's Chief Executive be authorized to execute and approve all related party transactions for the forthcoming year.

According to information available from the Pakistan Stock Exchange (PSX), the need for shareholder approval arises due to an inability to form a quorum within the company's board of directors. This issue is attributed to the directors' common directorship and shareholding in the associated companies involved in these transactions.

The resolutions are critical as they seek to ensure compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2019. The transactions have previously failed to receive board approval because a majority of directors had vested interests, which prevented the formation of a valid quorum as required by Section 207 of the Companies Act, 2017.

The shareholders' meeting will also consider granting the Chief Executive the authority to conduct transactions in the ordinary course of business with related parties for the fiscal year ending June 30, 2027, as per the policy approved by the board. This move aims to streamline operations and ensure that business activities can proceed without undue interruption.