12-20-2004, 09:37 PM
AOA,Members please Comments on"3.12.04 The Pakistan Institute of Corporate Governance has been established as a not-for-profit company aimed at promoting awareness and encouraging good corporate governance practices. The Institute will have its offices in KHI, LHR & ISL,announced by Dr Tariq,Chairman,SECP in ISL & said that although govts play a central role in shaping the legal,institutional & regulatory climate within which individual corporate governance systems r developed,major responsibility still lies with the corporate sector itself."Fair participation & collective will of all major stakeholders is required to improve the corporate governance culture of any country,".The Institute has 19 founder members, which represent regulatory bodies of the professional institutions, stock exchanges, corporate/financial sector & academia.The 1st 10-member Board of the Institute will be formed by the representatives of the founding members.The main objective of the Institute is to engender sound corporate governance practices & provide an enabling environment for implementation of Code of Corporate Governance issued by SECP.This would be achieved through creation of awareness about corporate governance through conferences,seminars,lectures etc.The Institute will also encourage compliance with socially responsible corporate practices & investing.The Institute will also provide a platform for research & development work & will make available key knowledge tools such as a library & connectivity/network with other institutions involved in this area.It will act as a forum for participation of all concerned to contribute towards developing a balanced corporate governance framework & will issue guidelines on matters of corporate governance to the directors/management/auditors, secretaries/general investors.Sound corporate governance has emerged as an essential success factor in national & international markets. Developed nations r now knowledge based & r more conscious of ethics related issues.Countries all over the world r keen to encourage good corporate governance to ensure fairness,transparency/accountability in the corporate sector & safeguard the interest of all stakeholders especially the minority shareholders.It is also empirically tested that jurisdictions that have implemented good governance measures r able 2 attract more capital.The establishment of Institute fulfills the need for an institutional arrangement where all major stakeholders jointly study governance practices and identify the problems,remain responsive 2 the external environment & come up with a combination of legislation/facilitation/cultural change/social values & changes in their respective roles where necessary.Such institutional arrangements around the world r now clearly leading the way 2 a more focused & diligent approach in creating a governance responsible corporate culture in developed & developing world countries.In March,02 SECP issued Code for Corporate Governance which became part of the listing regulations of the 3 stock exchanges.Extension of the Code to state-owned enterprises is also under consideration.Since its inception,SECP has been particularly keen 2 encourage good corporate governance 2 ensure transparency/accountability in the corporate sector & safeguard the interest of all stakeholders especially the minority shareholders.As part of these efforts,SECP took the lead in establishing the Institute as a co.u/S 42 of Co.Ord.84.Founding members of Institute include SECP;SBP;Pakistan Banks Ass.;Overseas InvestorsCCI;Federation PCCI;Investment Banks Ass.Pakistan; Leasing Ass.of Pakistan; Modaraba Ass.of Pakistan; Mutual Funds Ass.of Pakistan;IBA;LUMS;ICAP;Management Ass.of Pakistan;ICSP;ICSM;ICMAP;KSE;LSE;ISE" Regards Mahtab