Corporate governance rules: MPAs’ appointment to public companies’ boards challenged

Mahmoodur Rasheed submit that 12 MPAs are working as directors in violation of rules

LAHORE: Lahore High Court on Tuesday issued notices to 12 Provincial Assembly Members in a petition challenging their appointment to the board of directors of five public sector companies.

Petitioner Mian Mahmoodur Rasheed, leader of the opposition in the provincial assembly, submitted through his counsel, Advocate Sheraz Zaka, that these MPAs were appointed as directors in violation of Section 3(7) of the Public Sector Companies Corporate Government Rules 2013. He said that under the section anyone holding a political or a legislative office was not eligible for the appointment.

The petition said that MPA Ramazan Siddique Bhatti had been appointed as a director of the Lahore Transport Company; MPAs Nasreen Nawaz, Kiran Dar and Ramazan Siddique Bhatti of the Lahore Parking Company; MPAs Kashif Padhiar, Aman Ullah Khan, Qazi Adnan Fareed, Rana Baber Hussain, Chaudhry Lal Hussain, Mahmood Qadir Khan, Qamarul Islam, and Waheed Gul of the Punjab Saaf Pani Company; MPA Majid Zahoor of the Lahore Waste Management Company; and MPA Hussain Jahanian Gardezi of the Punjab Agriculture and Meat Company.

It said these companies were established under Section 42 of the Companies Ordinance of 1984 and were owned by the provincial government.

Advocate Zaka submitted in the court that the appointment of these MPAs was illegal and was a case of political interference and conflict of interest. He said the government was responsible for managing the affairs of these companies on a transparent and fair basis. However, he said by appointing sitting MPAs to the board of directors it had indulged in malpractice.

Zaka requested the court to issue directives for the provicnial government to implement the Public Sector Companies Corporate Governance Rules of 2013 which prohibit lawmakers from working on the board of directors of public sector companies. He also sought directives for the law ministry, the chief secretary and the companies concerned to abstain from appointing any member of a political party or a legislator to such positions.

Justice Ali Akbar Qureshi gave the respondents till March 18 to respond to the petition.

Published in The Express Tribune, March 2^nd, 2016.