SECP to protect minority shareholders

Task force will identify weaknesses and gaps in current mechanism.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has announced that it has set up a task force to identify weaknesses and gaps in the current protection mechanism for the shareholders of companies and suggest ways and means to overcome these through shareholder activism.

The decision came in the light of prevalent international practices, the SECP said in a press release on Monday.

The task force consists of representatives of the SECP, three stock exchanges and the Institute of Chartered Accountants of Pakistan, principally representing minority shareholders, institutional investors, nominees of professional accounting bodies and other stakeholders.

It will consider establishing a permanent platform for dialogue and cooperation on minority shareholder issues.

This will offer a unique opportunity to diverse stakeholders, including minority shareholders, representatives of different companies, experts on minority shareholder issues and representatives of government organisations to come together in a spirit of cooperation and constructive endeavour to address some of the key issues that challenge minority shareholders.

The forum will act as a grievance handling and dispute resolution platform for minority shareholders and create awareness of their rights. Moreover, it will identify and analyse best practices, challenges, opportunities and initiatives for further development.

The SECP said all shareholders should have the opportunity to have effective remedy in case of violation of their rights.

Published in The Express Tribune, January 29^th, 2013.

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