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| Corporate Governance - A modern day Myth? |
| Its funny but true..... i have read many many articles, in local and foreign journals, but this term 'Corporate Governance' still is as un-understandable for me as it was on day one!
Maybe its just another myth/hoax like Y2K which sure got the whole world watching and worrying about, but in the end, no diasters struck and it just fizzled out.
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| What is a CA ? |
| Chor Accountant
http://www.rewaj.com
Pakistan's First Life Style Portal |
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| e-Governance |
| I'll appreciate if any of learned colleague provides some feedback on "e-Governance in Corporate Sector". I had studied some material sometime back about "e-procurement" but since that subject was very limited, I couldn't gather much information in relation to Corporate Sector. However, one thing became quite clear from that limited material that future belongs to "e-Governance".
Please no beating about the bush, "Andaz-e-Bazi" or "Tuk-bandi".
Edited by - TheOne on May 21 2003 9:38:55 PM |
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| Corporate Governance...a "Scapegoat"??? |
| Recently in a business journal I saw an article concerning the captioned topic. I'm reproducing "S&P Score Card" which lists Four key components to consider when evaluating a company's governance standards. Those components are:
1) Ownership Structure & Influence...measures the transparency of ownership structure and assesses whether the influence of major shareholders is positive, negative or neutral;
2) Financial Stakeholder rights and relations...evaluates the quality of the company's interaction with its shareholders and creditors (for example, shareholder meeting procedures) and the rights afforded to those shareholders and creditors. The impact of any anti-takeover provisions that might thwart an otherwise ligitimate takeover attempt or entrench an unsatisfactory management is also taken into consideration;
3) Financial Transparency and information Disclosure... measures the quality, accessability and timeliness of financial, audit and operational disclosures to financial stakeholders. The analysis includes evaluation of a company's public filings, annual reports, and websites;
4) Board Structure and process... evaluates the structure and effectiveness of a company's Board of directors, the role and independence of its nonemployed directors, its risk management practices, how its strategy is formulated and any pertinent remuneration and succession issues.
After reading above Four key components, probably readers might become clear about our OWN standards of "Corporate Governance".....
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| Is corporate governce relevant to emerging markets |
| Hi friends!
I think this topic is quite hot at the moment in North America. Let us start by answering the basic question i.e. what is corporate governance?
As we know from our college freshman days, corporations are legal entities which are seperate from its owners. They breathe on their own and never die a natural death i.e. perpetual existence.
Corporations were originally designed to keep the management and majority owners seperate. In today's world it is not always the case.
There are public corporations whose majority owners are also managers.
However, one thing is undeniable, it is the most democratic form of business organization. It is where a number of stakeholders come together for achieving common goals. This convergence brings about a number of challenges for management. It has the responsibility to steward the resources of corporation in an ethical, moral and efficient manner.
As we can see governance is not just an accounting issue. It covers all aspects of corporate behaviour. How a corporation achieves its sales targets, earnings per share, and in general how it adds value to shareholder investments.
Ironically, CG issues come to surface when two others factors are visible in the economy:
1. The stock markets have come off their highs
2. The true potential of a new technology is known to general
public as opposed to hyped potential.
If we know our history, the same problems were talked about after
the crash of 1929 which led to establishment of SEC and Securities Laws of 1934. This was a time, when economy had to work through the excesses of pre-bust era of late 20s.
In the modern context, the corporate misgovernance conincides with the irrational markets after 1996. This was also a period where a new technology was surfacing and was being hyped by vested interests.
I will go as far as to say that there was political connivance at work in those days. As we remember, the president was in very hot waters over his scandalous behvaiour. In fact, it was openly argued that his impeachment in Senate is directly dependent on state of the economy. Would anybody be surprised if the administration pulled all stops for economic prosperity. In fact, it was "irrational exuberance" in the words of Allan Greenspan that gripped quite a few rational human beings. Wall Street was working on "whisper numbers"(numbers floated around by corporation relating to their quarterly earnings). In that atmosphere, corporations have to keep up with the Jones like we do in our ordinary lives. No corporation would committ suicide by releasing true state of affirs. A good account of this is given by ex SEC Chairman Arthur Levitt in his recent book.
The question that we need to ask in our country is: Does Corp Governance have any relevance to our economic scenario? Before we indulge in this luxry, do we have an infrastucture that gurantees semi-efficient markets if not fully efficient ones?
I don't presume to know the answers to these questions. But i will love to hear from knowledgeable sources. I will also request that we keep this discussion free from personal matters (Like how does my girl
friend react to my phony English accent?).
Looking forward for a real and substantive debate.
Edited by - Pervez on Jul 08 2003 04:00:40 AM
Edited by - Pervez on Jul 08 2003 04:10:54 AM
Edited by - Pervez on Jul 13 2003 04:23:11 AM |
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| I-Zone |
| Dear Friends!
As we all know, there are historical changes taking place in Pakistan in the field of investment and finance. In fact, KSE was one of the best performing markets in the world last year.
My suggestion is that we have a permanent zone where investment professionals can meet with professional accountants.
Let us talk about equity markets vs future markets, over-invoicing vs under-pricing, Enron vs Taj Company, pan chewing-beree puffing stock brokers of KSE vs pin stripe-white shoes boys of Wall Street, Harvy Pit vs S.M. Mirza, Sarbine-Oxley vs companies ordinance, Arther Anderson vs......(please fill in the blank)....
I will invite investment managers (if they happen to visit this site) to interact with their brothers in accounting profession. This will provide an opportunity for all to enhance their knowledge base and be part of the promised land of the future. For i think, in near future, it will be the ability of a nation to attract foreign and domestic investment that will determine its survival and standards of living.
Any taker...........
Edited by - Pervez on Jul 13 2003 06:57:32 AM
Edited by - Pervez on Jul 13 2003 07:12:34 AM |
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| Different rules for foreign companies? what hell |
| first of all, correct me if I'm wrong but that's truly disturbing.
A few days back I came to know that SBP has allowed banks to locate their ATMs separate from their branches, that is previously they could not just put an ATM anywhere and 'chal mera bhai'.
now I never knew that there was such a restriction. but I go to this Shell Select shop on Rashid minhas rd. in b/w askari project and millenium shopping mall, and been going there for quite some time now and in that store there's an ATM that belongs to a FOREIGN BANK, so whats with the 'gora saab'? and where's our SBP, I see 'em keep patroling our sch. banks like they own the place??
I've mentioned the location of the store so that if there's a bank branch in some 'kona' and if u happen to know u may clarify.
too much of CCG
Me rulz |
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| Definition of UNIT /SHARE |
| I want to know that does the definition of a UNIT (share in Unitholder's fund/ NAV)is the same as the definition of a SHARE?
Does a unit holder has the right to vote?
If some Institution is restricted to invest in shares, then this restriction could also be in the case of investment in Units?
If u can not understand what i am saying, then please feel free to contact me at ahsanalpha@hotmail.com
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