Listed Companies (Code of Corporate Governance) Regulations, 2017, have been approved for notification by the Securities and Exchange Commission of Pakistan (SECP).
They replace the Code of Corporate Governance, 2012 (CCG 2012) issued under the PSX listing regulation and are seen as a stride towards aligning corporate governance practices in Pakistan with best international standards. They shall come into effect for period beginning on January 1, 2018.
The regulations are aimed at strengthening governance structures, bringing consistency in the corporate practices and promoting transparency through enhanced disclosure requirements. Furthermore, the role and responsibilities of directors have been made more clear and enhanced, independent decision-making is encouraged, gender diversity is supported and mechanism for transparency and accountability is strengthened.
They have been finalized after rigorous in-house debate and extensive public consultations. The task force formed to suggest changes to the CCG 2012 was led by Mr. EbrahimSidat. It included representative of the SECP, PICG, Central Depository Company, Pakistan Stock Exchange, corporate practitioners and industry representatives.
Meanwhile, the Companies Act, 2017, was promulgated, which included the enabling provision to provide for framework of corporate governance, hence, regulations were framed. It was ensured that the said regulations are concise, avoid duplication of requirements of Act or any other statutory requirements and retained the best corporate principles as also endorsed by the 2012 Code and task force. —Agencies