Hassan Azam Shibbli
AS per Securities & Exchange Commission Pakistan (SECP) Act 2017 all listed Companies are required to hold Open House AGMs every year after the close of their financial year. Owing to this mandatory requirement the minority shareholders who, in fact, have invested their hard earned money in these companies get the only opportunity to meet, communicate, discuss and convey their views and suggestions on the financial performance of the individual companies with their top management and Board of Directors. Such meetings also give them an insight of management’s business plans and projections way forward.
Unfortunately, due to Covid pandemic, SECP had directed all listed Companies to hold AGMs through Video Link instead of open house meetings way back in March 2020. This restriction was further extended till 31-10-2020 vide its order # 25 of 2020 dated 31-8-2020. Initially the SECP directive was well timed and call of the hour. However, by the grace of Allah SWT since August the country has seen a marvelous turnaround in the overall Covid situation and as a result thereof total number of active cases has now dropped to less than 6000 and total number of daily patients has also reduced to 500 on the average.
Under the given situation normal business activities have already been restored all across the country. Flight operations have commenced and universities, colleges and even schools have also resumed normal educational activities under prescribed SOPs.
Parliament, cabinet meetings, court proceedings and other high official meetings are being held regularly under usual SOPs. Stock market is buzzing with historic activities and all 3 PSX buildings are thronged by investors in great numbers. Advisor to Finance is visiting Pakistan Stock Exchange frequently and as on 14-9-2020 has also participated in the traditional gong ceremony which was attended by hundreds of participants. Apart from this open house Corporate Analyst Briefings are being held regularly.
In the backdrop of above discussed scenario, this subscriber has written to SECP three times to revoke its earlier order of not to allow listed Companies to hold open house AGMs as holding of such meetings through video links have lost its importance significantly due to much improved Covid situation where entire country is back to normal activities, of course, by observing SOPs.
Nonetheless, the SECP somehow or other is not ready to listen to this issue and every time when it was approached its reply was based on one phrase i.e. although Covid has subsided but not finished as yet. This subscriber has failed to understand the rationale behind SECPs adamant attitude that without being prejudice or biased seems to be an act of commission where SECP wilfully wants to shield listed Companies from facing their shareholders and this attitude is highly deplorable if not fraught with suspicion.
I, therefore, invite attention of Special Advisor on Finance and Governor State Bank to this all important issue which is of vital importance for good corporate governance and request them to intervene and direct SECP to revoke its order of holding of AGMs through video links that is more than a useless practice due to poor IT knowledge and lack of participation by general public and allow the listed companies to hold open house meetings immediately, of course, by observing usual SOPs.
—The writer is freelance columnist, based in Islamabad.
