Code of Corporate Governance guide 2012

April 29, 2012 | By More

The importance of corporate governance lies in its contribution both to business prosperity and to accountability. The Securities and Exchange Commission of Pakistan (SECP) thus endeavors to raise the corporate governance standards in the country. The first major effort was made in March 2002, when the Code of Corporate Governance (Code) was issued by SECP. It was subsequently made part of the listing regulations of the three stock exchanges and became applicable to all public listed companies.

The revisions in the Code are indicative of the fact that governance standards are dynamic and need to be reviewed to keep the governance framework relevant and effective. Therefore, in order to keep pace with the constantly evolving corporate sector and financial markets and the resultant governance benchmarks, the process of revising the Code was initiated. The objective was to further improve and raise the standards of corporate governance in the country while at the same time taking into consideration the global developments in corporate governance.

While all suggestions were taken into consideration, the Code has been finalized keeping in view the global developments in corporate governance and the overall objective of raising the standards of corporate governance in the country.

A comparison of the 2002 and 2012 Codes is available here.

Posted by: Majid Shabbir
Official Moderator BSO Forum

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Category: Trade & Economy

Comments (1)

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  1. Muhammad Ramzan says:

    Good effort to educate listed companies about new corporate governance. It will help them in adopting best business practices and bringing transparency in their operations to emerge as good corporate entities.