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Pakistan forms institute of corporate governance - Mahtab - 12-20-2004

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

are able to 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 to 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

to 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;




- maani - 01-01-2005

plz brief ur we can extract the meanings...plz


- Mahtab - 01-03-2005

Sorry for inconvenience
I just want to know Views/Comments of Members of this Forum on
"Formation of Pakistan Institute of Corporate Governace"
Regret for any problem you face by my Post
Thanks and Regards

- Pracs - 01-04-2005

What kind of a response are you looking for mahtab...?

we will have to wait and see how and what this institute adds to the corporate world. From what i gather it does not have any regulatory say on the issue. I guess it will function more on the lines of ''Institute of South Asian Studies'',.. more of a think tank and research centre

Perhaps an institute with some sort of regulatory role would be more effective. Then again as per my humble opinion government watch dogs like the SECP and the State Bank (for financial institutions)are more suited with widening regulatory authority...

"Allah does not change the state of people unless they change what is within themselves" Quran 1311

Edited by - Pracs on Jan 03 2005 75754 PM

- Mahtab - 02-02-2005

AOA here is Extraction from ICAP's website
"The Institute of Chartered Accountants of Pakistan is entrusted with an important public interest statutory mandate under the Chartered Accountants Ordinance, 1961 of regulating the profession of accountants. The members of the accounting profession play a key role in corporate governance, both as part of management, and as the external auditors of the corporate entities in Pakistan. A number of ICAP members also serve as Chairmen, Chief Executives, board members and members of audit committees of corporate entities.
The efforts of ICAP resulted in the Draft Code of Corporate Governance later re-examined and enforced by the Securities & Exchange Commission of Pakistan (SECP) through the listing rules of the stock exchanges in May 2002?. Recently the SECP has announced the formation of an Institute of Corporate Governance of which ICAP is a founder member.
ICAP as a part of its pro-active role of providing guidance to its members in all areas of their professional performance is also in the public interest required to reach out to those who are actively involved in any manner with the management and ownership of corporate entities but may not be members of ICAP.
Accordingly, ICAP has set up a Group on Corporate Governance under its aegis that will not only supplement the efforts of the Institute of Corporate Governance but intends to address the issues relating to the subject of Corporate Social Responsibility, of which Corporate Governance is an important part, and prepare and provide practical guidelines and framework for the Pakistani business environment".

- Sarfaraz - 02-06-2005

Ufffffffff bahiyooooo agar itni lambeeee lambeeee cheezain parh sakte to first attempt main CA qualify na kar jate
plz short words main batain k kehna kia chahte hain........

There is a will. There is a way.

- Shahid_fss - 03-07-2005

On screen, when I read 5th line, after complition I find out that somewhere in the middle of the line I jumped to 6th or 7th line.
so when I started it was 5th but when I ended it was 7th line.
Long topics always confuse me.

```*``` I love stars;
*`*`*`* Shining;
`*`*`*` and Smiling;
*`````* Always.

- Mahtab - 04-20-2005

Shahid & Sarfraz
Sorry for Long Post

- Mahtab - 05-20-2005


Friday, March 11, 2005

Meeting of Academic Committee of PICG held

KARACHI - The first meeting of Academic Committee of the Pakistan Institute of Corporate Governance (PICG) was held at IBA City Campus.

The committee discussed various options concerning the academic and professional activities to be undertaken by the Institute and decided to hold series of seminars to promote good governance practices amongst the directors and executives of limited companies.

The institute shall introduce regular programmes for education on corporate governance as a subject and training in the field of corporate governance for directors, corporate executives and CFO of companies by using educational facilities of the IBA and LUMS, who are among the promoters of Institute.

The committee observed under the existing arrangements that the prospective members of the Institute would be benefited from wide range of research and publication facilities of the IBA including library.



- Mahtab - 09-21-2005

Pakistan Institute of Corporate Governance (PICG) Introduction

Sound corporate governance has emerged as a crucial success factor in

national and international markets. Countries all over the world are

keen to encourage good corporate governance to ensure fairness,

transparency and accountability in the corporate sector and safeguard

the interest of all stakeholders, especially the minority share-

holders. Empirical research also suggests that jurisdictions

that adhere to good governance practices tend to attract more capital.

Although governments play a central role in shaping the legal,

institutional and regulatory climate, the major responsibility lies

with the corporate sector itself. Fair participation and collective

will of all major stakeholders is required to improve the corporate

governance culture of any country. This requires an institutional

arrangement where all major stakeholders may come collectively and

discuss governance practices, identify problems and their solutions

and evolve best governance practices.

Establishment of Institute The Pakistan Institute of Corporate

Governance (PICG) has been set up as a not-forprofit company, limited

by guarantee and without share capital.

It has been licensed under Section 42 of the Companies Ordinance, 1984.
The PICG will undertake activities geared towards achieving good

corporate governance in the country and creating an enabling

environment for effective implementation of the Code of Corporate

Governance. The PICG anticipates becoming a leading provider of

knowledge and awareness in the country related to corporate

governance practices. It will strive to encourage best practices in

corporate governance in public and private sectors, with focus on

capacity building of board of directors, management, policy makers,

investors, and other stakeholders. It shall also endeavor to cover

all the issues related to corporate governance at national and

international level.

Promoters The PICG has been formed through initial sponsors,

which comprise a balanced representation of major stakeholders from

public and private sectors.

The promoters of PICG are as follows

Corporate Regulator

· Securities and Exchange Commission of Pakistan

Banking Regulator

· State Bank of Pakistan

Corporate Sector

· Federation of Pakistan Chambers of Commerce and Industry

· Overseas Investors Chambers of Commerce and Industry

- Mahtab - 09-21-2005

Non-banking Financial Sector

· Modaraba Association of Pakistan

· Leasing Association of Pakistan

· Mutual Funds Association of Pakistan

· Investment Banks Association of Pakistan

Banking Sector

· Pakistan Banks’ Association

Stock Exchanges

· Karachi Stock Exchange

· Lahore Stock Exchange

· Islamabad Stock Exchange


· Institute of Business Administration

· Lahore University of Management Sciences

Professional Institutions

· Institute of Chartered Accountants of Pakistan

· Institute of Cost and Management Accountants of Pakistan

· Institute of Corporate Secretaries of Pakistan

· Institute of Chartered Secretaries and Managers

· Management Association of Pakistan


The promoters of PICG, who have subscribed to its Memorandum of

Association, are the founding members.

Subsequent membership of PICG is open to individuals and corporates.

Objectives The major objectives of PICG are as follows

a. To promote awareness of corporate governance and to encourage

professionalinteraction among members.

b. To carry out activities of communication with the media, general

public, educators, investors, creditors, bodies corporate, directors,

business managers,auditors and other stakeholders so as to increase

awareness about and encourage compliance with good corporate

governance and socially responsible corporate practices, including

socially responsible investing.

c. To develop education and training initiatives including-

· Programs for education on corporate governance as a subject or any

specific area of corporate governance practices.

- Mahtab - 09-21-2005

· Programs on implementation of corporate governance practices &


· Courses for education of directors on the way to execute their


· Programs directed towards the role, participation of auditors

including internal auditors.

· Sector specific programs on the area of corporate governance.

· Training prospective trainers in the area of corporate governance.

· Training needs assessments for various organizations.

d. To enhance self-regulating practices and to carry out

accreditation of selfregulatory organizations.

e. To strengthen compliance and conformance by bodies corporate to

laws, rules and regulations.

f. To enhance accountability of management to stakeholders including

members, employees, customers, suppliers & creditors of the body

corporate & the environment in which the body corporate does its


g. To organize conferences, seminars, lectures and exhibitions either

independently or otherwise for the members or public at large.

h. To provide a platform for research and development work.

i. To establish and maintain a library, research centre, reviews,

periodicals, newspapers, investment updates, companies' statistics

and data.

j. To collect, collate and edit material for dissemination and to

print and publish newsletters, periodicals, books, reports, journals,

brochures, leaflets or other works of publication and disseminate the

publications to the members in connection with, or for the

furtherance of, the objects of the Institute.

k. To issue guidelines on matters of corporate governance to the

directors, management, secretaries, auditors and investors.

l. To encourage and provide a conducive environment for members to

exchange opinions, knowledge and information on corporate governance


m. To establish an effective forum of discussions and for the results

of these discussions to be communicated to the relevant government

agencies and regulators for amendments in the laws and regulations

where necessary.

n. To provide consulting services on matters pertaining to corporate

governance and allied matters and to generate revenues from the

intellectual assets created through its work.

Activities It is anticipated that in pursuing its objectives, the

Institute shall undertake the following activities and generate

income (wherever possible) therefrom

- Mahtab - 09-21-2005

· Education and training

· Awareness creation

· Resource center and research

· Issue of guidelines and publications

· Forum of discussions and representing views

· Consulting services

The PICG Board

The Board of Directors of PICG presently comprises the following

· Dr. Tariq Hassan (chairman)

· Mr. Danishmand (CEO)

· Mr. Jameel Ahmad

· Mr. S.H.A. Bukhari

· Mr. Muhammad Yasin Lakhani

· Mr. Mohammad Rafi

· Mr. Zaigham Mahmood Rizvi

· Mr. Zafar Iqbal Sobani

· Mr. Shaukat Tarin

· Mr. Chaudhry Mohammad Saeed

Board Committees

1. Executive Committee

The committee’s main tasks include processing recruitment of staff,

developing membership criteria, ensuring that meetings are held, and

overseeing compliance with legal requirements.

2. Academic Committee

This committee shall be involved in searching for a core faculty team

as well as a full time CEO of PICG. It shall also develop a program

of activities over the year.

3. Finance Committee

The Finance Committee shall look at the financial and budgetary

matters, audit and accounting requirements, treasury functions,

monetize the in-kind contributions of LUMS and IBA, and collect

financial contributions from promoters of PICG.

- Mahtab - 09-21-2005

Thank You Very much for reading the above

for Details about PICG Memoradum & Articles of Ass.

Please Visit



- Mahtab - 09-21-2005

Under the guidance of the Securities and Exchange Commission of

Pakistan (SECP), a Memorandum of Understanding (MoU), was signed on

Friday, by the representatives of leading private sector

organisations and the government regulators for setting-up the

Pakistan Institute of Corporate Governance (PICG).

The founding members of the PICG envision activities geared towards

achieving good corporate governance in Pakistan and creating an

environment for the effective implementation of the code of corporate

governance. The signing ceremony of the founding members was

presided over by the Chairman SECP, Dr Tariq Hassan, at the

commission’s registration office. The agreement signed by the

founding members provides a platform for co-ordination among the

signatories for establishment and successful operation of the PICG

and nomination of authorised promoters to incorporate and register

the PICG. It was decided in the meeting that the new corporate

governance body being set-up by the SECP should be open to individual

membership too, once it starts functioning properly. Addressing the

participants of the meeting, the Chairman SECP Dr Tariq Hassan said

"The signing of the MoU is a landmark occasion in Pakistan’s

corporate governance history as all key players have come together to

commit their resources to promote good governance practice."

The President of the Pakistan Banks Association, Shaukat Tarin,

speaking on the occasion said

"The proposed PICG should develop essential guidelines and systems

for the companies to voluntarily seek its accreditation. The founding

members must ensure the value and prestige associated with this kind

of accreditation."

Also present on the occasion was President Federation of Pakistan

Chambers of Commerce and Industry, Riaz Tata, who appreciating the

role of research for the futuristic organisation.