SECP revises corporate governance regulations
Reduces limit on maximum number of directors on board
PHOTO: SECP
KARACHI:
The Securities and Exchange Commission of Pakistan (SECP) has introduced revised regulations on ‘corporate governance’, which bind listed companies to have at least one female director on board.
The new regulations have reduced the maximum number of directors on board to five from seven and fixed the number of independent directors to at least two or one-third, whichever is higher.
SECP orders probe as allegations of ‘leaked data’ surface
The new regulations namely; Listed Companies (Code of Corporate Governance) Regulations, 2017 would replace the Code of Corporate Governance, 2012 (CCG 2012) and shall come into effect from January 1, 2018, the SECP said in a press statement on Wednesday.
The objective of the revised regulation is to make the board more powerful that may protect interest of both; the company and the stakeholders in a better way, said the commission.
The new regulations also urged upon the companies to formulate ‘whistleblowing mechanism’ to empower and protect all the directors on board to hint wrongdoing in the company, if and when they find it.
The statement said independent directors shall be required to file a declaration confirming that statutory criteria for independence has been duly complied.
Ex-SECP chief’s petition for acquittal dismissed
One of the significant requirements of the act is to prescribe female directors has been incorporated in the regulations by mandating one female director within one year of notification of regulations or reconstitution of board, whichever is later. This shall strengthen gender balance on boards.
Moreover, in order to encourage inclusion of competent female directorship, companies are required to train at least one female executive under the directors’ training program. Directors have been mandated to attend general meetings and participate in framing and considering significant policies.
Published in The Express Tribune, November 23rd, 2017.
The Securities and Exchange Commission of Pakistan (SECP) has introduced revised regulations on ‘corporate governance’, which bind listed companies to have at least one female director on board.
The new regulations have reduced the maximum number of directors on board to five from seven and fixed the number of independent directors to at least two or one-third, whichever is higher.
SECP orders probe as allegations of ‘leaked data’ surface
The new regulations namely; Listed Companies (Code of Corporate Governance) Regulations, 2017 would replace the Code of Corporate Governance, 2012 (CCG 2012) and shall come into effect from January 1, 2018, the SECP said in a press statement on Wednesday.
The objective of the revised regulation is to make the board more powerful that may protect interest of both; the company and the stakeholders in a better way, said the commission.
The new regulations also urged upon the companies to formulate ‘whistleblowing mechanism’ to empower and protect all the directors on board to hint wrongdoing in the company, if and when they find it.
The statement said independent directors shall be required to file a declaration confirming that statutory criteria for independence has been duly complied.
Ex-SECP chief’s petition for acquittal dismissed
One of the significant requirements of the act is to prescribe female directors has been incorporated in the regulations by mandating one female director within one year of notification of regulations or reconstitution of board, whichever is later. This shall strengthen gender balance on boards.
Moreover, in order to encourage inclusion of competent female directorship, companies are required to train at least one female executive under the directors’ training program. Directors have been mandated to attend general meetings and participate in framing and considering significant policies.
Published in The Express Tribune, November 23rd, 2017.