ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has taken a significant step by establishing a committee of experts tasked with evaluating the way shareholder meetings are conducted by companies listed on the Pakistan Stock Exchange (PSX) and addressing related matters.
The primary objective of forming this committee is to identify potential reforms that can enhance transparency in the process of conducting shareholder meetings and ensure the fair resolution of concerns, especially those of minority shareholders.
This committee is entrusted with the responsibility of scrutinizing the regulatory requirements governing shareholder meetings, which encompass various aspects, including the election of directors and the use of proxies. It will pinpoint areas of concern and propose reforms aimed at fostering fairness and transparency in these proceedings. Additionally, the committee is expected to recommend an effective monitoring mechanism for meeting proceedings, which may involve recording meeting minutes, and explore how technology can be leveraged to enhance efficiency.
The composition of the committee reflects a broad spectrum of expertise in the financial and corporate sector, with 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.
This initiative demonstrates the SECP’s commitment to bolstering the transparency and fairness of shareholder meetings, which play a crucial role in ensuring the integrity of corporate governance and safeguarding the rights and interests of shareholders, particularly minority stakeholders. The committee’s efforts are expected to lead to a more robust and equitable framework for conducting these vital corporate interactions in Pakistan’s financial markets.
