ISLAMABAD (January 08 2004): In continuation of its efforts to improve corporate governance practices in the country, the Securities and Exchange Commission of Pakistan (SECP) has prepared a manual of corporate governance which explains the responsibilities of management, directors and auditors of listed companies in achieving compliance with good governance practices.
The SECP issued the Code of Corporate Governance in March, 2002, which was subsequently incorporated in the listing regulations of the stock exchanges. The code seeks to establish a framework of good corporate governance whereby a company is managed in compliance with best practices.
The manual serves as reference handbook for companies. It explains the importance of good corporate governance practices for companies and explains the duties and responsibilities of directors and managers of a company in terms of the Code of Corporate Governance and the Companies Ordinance, 1984.
The manual also explains the role of various stakeholders in a company.
The manual is divided into following sections: