Code of Corporate Governance

  • December 24, 2019
Code of Corporate Governance

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 copy of the code of corporate governance is attached herewith for your information.

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