ISLAMABAD: To ensure transparency and accountability in corporate practices, the Securities and Exchange Commission of Pakistan (SECP) has formed a specialized committee comprising experts from various sectors. The primary objective of this committee is to thoroughly review the conduct of shareholder meetings by companies listed on the Pakistan Stock Exchange (PSX) and related matters.
As per details, the formation of this committee marks a pivotal step by SECP to identify areas within shareholder meetings that require reform. One of the core focuses of the committee will be to enhance transparency in the conduct of these meetings and ensure that concerns, especially those raised by minority shareholders, are adequately addressed.
The committee’s responsibilities include a comprehensive review of the existing regulatory requirements concerning shareholder meetings, encompassing aspects such as the election of directors and the utilization of proxies. By identifying areas of concern and suggesting reforms, the committee aims to introduce improvements that promote fairness and openness in corporate decision-making processes.
Furthermore, the committee has been entrusted with the crucial task of proposing an effective monitoring mechanism for meeting proceedings. This includes exploring ways to enhance the efficiency of recording meeting minutes, a critical aspect in ensuring accurate documentation of discussions and decisions made during these gatherings. Additionally, the committee will assess the role of technology in streamlining and enhancing the overall efficiency of shareholder meetings.
To guarantee a holistic and diverse perspective, the committee comprises representatives from key entities, including the Pakistan Stock Exchange (PSX), Central Depository Company (CDC), Mutual Funds Association of Pakistan (MUFAP), Pakistan Business Council (PBC), Institute of Chartered Accountants of Pakistan (ICAP), Pakistan Institute of Corporate Governance (PICG), and the CFA Society.
