Pakistan forms institute of corporate governance - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=4) +--- Forum: Corporate Governance (https://www.accountancy.com.pk/forum/forumdisplay.php?fid=10) +--- Thread: Pakistan forms institute of corporate governance (/showthread.php?tid=1443) |
- Mahtab - 09-21-2005 PICG to train business executives Pakistan Institute of Corporate Governance would soon introduce regular programmes for education on corporate governance as a subject and training in the particular field. âThe forthcoming course and training would be offered to directors, corporate executives and chief financial officers of the companies,â said a PICG statement issued on Thursday. It said that under the existing arrangements, the prospective members of the PICG would immediately be benefited from the available wide range of research and publication facilities of the Institute of Business Administration (IBA) including a library having unique collection of over 50,000 books - Mahtab - 09-21-2005 Dr Tariq Hasan, chairman of the Securities and Exchange Commission of Pakistan (SECP) has said that there will be no further extension in the date of demutualisation of stock exchanges and the SECP is forming a company law commission in order to revise and upgrade current laws. Dr Hasan, while taking to reporters at a seminar held at in Karachi, said the commission has felt the need to revise that existing laws and reform it where it is required. And for that the SECP will establish a separate company law commission by February. He said regulations for the electronic trading are under preparation and would be introduced in one month. On the other hand for awareness regarding E-governance and to improve corporate governance in general the commission has formed Pakistan Institute of Corporate Governance (PICG), which is likely to strengthen the corporate governance in country, he added. Dr Hasan said that in a recent visit of a delegation of International Monitory Fund (IMF) has also appreciated the recent development in regulatory framework. Edited by - Mahtab on Sep 21 2005 50208 PM - Mahtab - 02-15-2006 Since the arrival of the Code of Corporate governance for the listed companies in 2002, a healthy debate has started on how to improve the corporate governance in the country. Good corporate governance means that companies are run in the best interest of the shareholders and the other stakeholders. The principles underlying good corporate governance practices are transparency, accountability, and control systems. One key conclusion that has come out of the discussions on corporate governance is that there is a need for a Centre of Corporate Governance in the country, which can inculcate the principles in the practitioners. This centre or institute would be an agent of change in raising the governance standards and keeping alive the debate on the subject. The objective of the Centre would be to determine the best practices of corporate governance and educate the various stakeholders in companies about these practices. It would be the forum where practitioners, regulators, and academics would meet to openly debate the governance issues. The result of this interaction would be that the governance standards in the country's companies would be raised to the betterment of all stakeholders. There are a number of institutes of corporate governance internationally. In Europe, there is European Corporate Governance Institute (ECGI), which has its registered office in Belgium. It is an international research oriented non-profit association. According to ECGI, its primary role is 'to undertake and disseminate impartial and objective research on corporate governance and undertake any other activity that will improve understanding and exercise of the highest standards in corporate governance.' In USA, universities have set up their own institute of corporate governance focusing on providing quality research on the subject. The International Institute of Corporate Governance (IICG) was established at the Yale School of Management, USA in 2001. Its objective is 'to be the leading research, teaching, and policy centre focused on the institutional framework for corporate governance and the principle and practices of effective corporate governance.' A Centre for Corporate Governance is also working at the Tuck School of Business at Dartmouth, Hanover. Similarly, there are other institutes with similar objectives. In Russia, an Institute of Corporate Law and Corporate Governance was set up in 2000. The mission of this institute is to 'facilitate private initiatives to improve corporate governance and protect investor rights.' It has a much broader scope than most of the other institutes and carries out activities such as expert evaluation of corporate governance arrangements of major Russian companies, continuous rating of businesses for the quality of their corporate governance and consultation with various market stakeholders on aspects of corporate governance including corporate restructuring. In some countries, instead of an institute of corporate governance, a more focused institute of directors has been established. The well-known Institute of Directors (IOD) is based in London since 1903. Its philosophy is to 'to serve, support, represent and set standards for directors'. Currently it has around 55,000 members. In Canada, an institute of Corporate Director is working since 1982, in Thailand, since 1997, and in Singapore since 1998. These institutes are not a luxury of the relatively developed countries. Countries like Nigeria and Malta also have their IODs. The international models show that such a centre can be established in a number of different ways. It can be research oriented, work on overall corporate governance or focus on the board of directors. We propose that the Centre in Pakistan should be established as a non-profit association focusing more on practical aspects of corporate governance rather than academic research. Its particular focus should be on the regulators - the stock exchanges, SBP, and SECP - because the regulators can convert a practice into law and then implement it. The Centre can also help the regulators raise their own standards of governance, which would bring more force to their efforts. To meaningfully contribute to corporate governance on an ongoing basis and to really make its presence felt, the Centre should rate companies on corporate governance. These ratings would communicate to all the stakeholders how good or bad a company is being governed. A not-for-profit entity, its ratings would be subject to lesser conflicts of interest than those of a credit rating company. These ratings would also provide the centre with on-going income. On the basis of its ratings, market forces would reward well-governed companies and penalise poorly governed companies. These ratings would be particularly helpful to those who do not possess the knowledge or resources to gauge the quality of governance in a company. The Centre would also play a key role in educating directors of their responsibilities. The board of directors is a key element in the governance structure. Often directors, particularly, non-executive directors have little idea of best governance practices. By arranging short courses for directors, the Centre can make a substantial contribution to the betterment of corporate governance within a short time. An area on which the Centre can contribute tremendously is the public sector enterprises. The government owned and controlled enterprises are not known for virtues like competence, transparency, and accountability. Their directors and the senior management are quite likely to be lacking the knowledge and skills required for good governance. Ideally, there should be a selected set of mandatory courses for educating the directors and senior managers of public sector companies. The Centre should target creditors, particularly bankers, to educate them on their role in corporate governance. Banks are the largest lenders to most of the companies and they can use their bargaining power to implement best practices in their debtor companies, to their own advantage and to the advantage of other stakeholders. This Centre should be the main channel through which the best international practices would flow to our corporate sectors. Through an active exchange of information, this Centre would learn from the corporate experience the world over and bring the best practices to Pakistan, customised for the local needs. The Centre would need to maintain a strong presence in the media, particularly the Internet, television, and newspapers. Considering the interest of the regulators and the companies in the on-going debate on corporate governance, such presence would not be difficult to establish. The centre would also need to be mobile. It should not stand still like a university that waits for its students to come to it but reach out to its customers. It can use the premises of different business schools to carry out its activities. There would be a need for office space but there should not be any need for g*****ose buildings. A Centre is only as good as those who are running it. It would be critical to select a diverse group of the very best for running it. It would be worth taking some extra time and effort to select a small team of outstanding individuals. Mediocrity must stay away or it would ruin the Centre before it takes off. We think that the listed companies, regulators, foreign donors such as Asian Development Bank (ADB), United Nations Development Program (UNDP), the International Finance Corporation (IFC), different existing institutes such as Institute of Charted Accountants of Pakistan (ICAP), Institute of Cost & Management Accountants of Pakistan (ICMAP) and leading business schools should all make monetary and resource contributions to set up the institution and help make it a success. The donors and the regulators should take the initiative and later, others would come on board. The establishment of this Centre would institutionalise the debate on corporate governance and take the good governance initiative forward. - Mahtab - 02-15-2006 AOA above post is a quote from TheNews Sorry for not mentioning it in post Regards Mahtab - Mahtab - 04-25-2006 AOA Quote from UN online "During the past few years, the financial and corporate world has witnessed significant changes. Following the Asian financial crisis, recent accounting scandals have brought to light the importance of an effective institutional framework that would help corporate management increase shareholder value while protecting the interests of other stakeholders. To achieve this goal, the Securities and Exchange Commission (SEC) of Pakistan (www.secp.gov.pk), in partnership with the United Nations Development Programme (UNDP) and the Economic Affairs Division of the Government of Pakistan, launched the SEC-UNDP Project on Corporate Governance in August 2002. Under the purview of the Project, UNDP has provided technical and financial assistance to the SEC for developing and implementing good corporate governance practices and establishing a sound regulatory framework for the corporate sector in the country. The work involves implementation of the Code of Corporate Governance, issued by the SEC in March 2002, creating stakeholder awareness, capacity-building and networking with other emerging markets. In order to attract sustainable capital, it is imperative for economies in transition to focus on evolving a system that ensures good corporate governance. As the dust settles after the Asian financial crisis, most economic and development commentators feel that a major determinant of the relationship between long-term economic growth and poverty reduction is a well-functioning financial and corporate sector. The inflow of foreign capital brings with it a transfer of technology and managerial skillsâfactors crucial to the developing countries in their economic progress. At the same time, the confidence of local investors also heightens. This increased economic activity improves human welfare in the form of an efficient allocation of resources and more employment. Therefore, implementing good governance practices has a positive impact on economic growth, which creates opportunities and brings people above the poverty line. The SEC-UNDP Project aims to make a positive contribution towards economic growth in Pakistan by developing a stronger financial and corporate sector. A Corporate Governance Cell has been established at the SEC, which acts as a resource centre and carries out research and awareness campaigns on various issues related to corporate governance. Guidelines and newsletters are also being distributed to the corporate community for a better understanding of the issue, and research is being carried out for the harmonization of the provisions of the Code with corporate laws and an assessment of the state of corporate governance. The Cell also aims to prepare groundwork for the establishment of an institute of corporate governance. A monthly briefing series has been initiated to further increase public awareness on various aspects of corporate governance. In order to generate meaningful debate, extensive research work is in progress for a working paper series, the first focusing on the role of institutional shareholders in the promotion of corporate governance in Pakistan. Another major initiative of the Cell is the development of corporate governance index, where work has already started, to indicate assessment of practices and policies and to reflect the relative level to which a company accepts and follows the Code and guidelines of corporate governance. An important part of the Project is the exchange of contemporary ideas and collaboration on key issues. SEC officials have been participating in study tours to leading international institutions that are involved in the promotion and development of sound governance practices. In order to encourage participation of stakeholders in the system, it is essential to broaden their understanding of the subject. In this regard, the SEC has been conducting several activities, including seminars and workshops, to increase the awareness of the directors and management of listed companies of their statutory and fiduciary duties. The first seminar under the Project-Strengthening Corporate Governance in Pakistanâwas held on 28 November 2002 and included local and foreign participants, who gave an international perspective on corporate governance. Three workshops have already been organizedâin Islamabad, Karachi and Lahoreâon the "Responsibilities of Directors and Management of Listed Companies". An important aspect of these workshops was the utilization of the case study method in order to draw lessons from corporate failures in the country and other parts of the world. Participants lauded the efforts being undertaken by the SEC to improve good governance practices. The SEC is also planning to publish a manual that will highlight the role and responsibilities of directors, keeping in mind the economic and legislative conditions prevailing in Pakistan. In addition, it plans to hold a conference involving key players in the country and abroad. By complementing resources with UNDP, SEC has managed to act as an agent for bringing positive change in the corporate culture of Pakistan. A more transparent and efficient corporate sector would thus gain investors' confidence and yield positive results towards growth. Author Shahnawaz Mahmood of the SEC of Pakistan is working as research officer on the UNDP Project on Corporate Governance. Regards Mahtab - Mahtab - 04-25-2006 AOA Press Release IFC and Pakistanâs Securities and Exchange Commission to Strengthen Corporate Governance Reforms in Pakistan Islamabad and Cairo, The Securities and Exchange Commission of Pakistan and the International Finance Corporation, the private sector arm of the World Bank Group, today signed a Memorandum of Understanding today in Islamabad to promote and support corporate governance reforms in Pakistan. Dr. Tariq Hassan, Chairman of the Securities and Exchange Commission of Pakistan, said, âThis is the first project to tackle corporate governance reforms on a comprehensive basis in our country. The project sets out to strengthen current practices of financial institutions and corporations. It will also advise the public sector on how to improve upon the legal and regulatory framework for corporate governance and will build institutional capacity for developing corporate governance curricula and training.â He added that the project would help the Pakistan Institute of Corporate Governance become a leading provider of knowledge and awareness related to corporate governance practices in the country. âWhat makes this joint initiative so unique,â added Michael Essex, IFCâs Acting Director for the Middle East and North Africa, âis that it will attempt to turn a short-term technical assistance project into a sustainable structure that can provide quality corporate governance services. It will do so by working both with and through the recently established Pakistan Institute of Corporate Governance.â The initiative announced today, the Pakistan Corporate Governance Project, is fully funded by IFC and proposes to support the Pakistan Institute of Corporate Governance in five key areas Setting up training and certificate programs on corporate governance for company directors, managers, and secretaries; Building capacity for research and development to conduct surveys, issue publications, and produce best practice manuals; Developing and providing consulting and advisory services on corporate governance to Pakistanâs banks and corporations; Raising awareness of corporate governance practices via conferences, seminars, and roundtables; Providing policy advice to the government on legal and regulatory reforms relating to corporate governance. âThis joint initiative is a business project, with clearly defined goals, objectives, and activities that are to be laid out in a detailed business planâ said Jesper Kjaer, General Manager of IFCâs Private Enterprise Partnership for the Middle East and North Africa (PEP-MENA). He added, âAll future services are to be based on internationally recognized best practices, yet tailored to Pakistanâs emerging market environment, focusing on key corporate governance issues that are relevant to family-owned structures. These include building professional boards, implementing internal control systems, facilitating succession planning, and ensuring information disclosure for minority, outside shareholders." PEP-MENA is IFCâs technical assistance facility that supports private sector development in the Middle East and North Africa. PEP-MENA focuses on improving the business enabling and regulatory environment in the region; strengthening the financial sector; promoting the growth of small and medium enterprises and their support services, such as business organizations and consulting firms; helping restructure and privatize state-owned enterprises; and developing viable private sector and public-private partnership projects, especially in infrastructure. The mission of IFC (www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve peopleâs lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFCâs worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications. The Securities and Exchange Commission of Pakistan (www.secp.gov.pk) is the apex regulator of the corporate sector, capital market, and nonbank financial sector in Pakistan. The Commission introduced the Code of Corporate Governance in Pakistan through the listing regulations of the stock exchanges and has been actively involved in promoting awareness and implementation of good corporate governance. It played a lead role in establishing a dedicated institute on corporate governance, the Pakistan Institute of Corporate Governance, as a public-private partnership that provides an enabling environment for effective implementation of the Code of Corporate Governance. The Pakistan Institute of Corporate Governance is a not-for-profit company set up under Section 42 of the Companies Ordinance, 1984. It aims to undertake activities that help achieve good corporate governance in Pakistan and to create an enabling environment for effective implementation of the Code of Corporate Governance. The Instituteâs initial sponsors comprise a balanced representation of all major stakeholders from the countryâs public and private sectors. The founding members have subscribed to the Instituteâs Memorandum of Association. Regards Mahtab - Muhammad Ahmad - 05-07-2006 hello Mahtab, During my search about the ICSP i,fortunatly,came to know through this forum that you r in touch with Icsp since its inception in year 2004 and also have knowledge about the institute and its market value.As a perspective student of this institute i thought your comments/ guidance will be valueable for me.I m in need of all such information like where to go for admission,study etc. i also want to know its market value in the present corporate senario of pakistan specifically with referenc to the eXisting institute like ICAP & ICMAp,as both of these are, off course, contributting a lot toward the present corporate culture in the country. Many Regards Muhammad Ahmad rawallay@gmail.com - Mahtab - 05-08-2006 <blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote">hello Mahtab, During my search about the ICSP i,fortunatly,came to know through this forum that you r in touch with Icsp since its inception in year 2004 and also have knowledge about the institute and its market value.As a perspective student of this institute i thought your comments/ guidance will be valueable for me.I m in need of all such information like where to go for admission,study etc. i also want to know its market value in the present corporate senario of pakistan specifically with referenc to the eXisting institute like ICAP & ICMAp,as both of these are, off course, contributting a lot toward the present corporate culture in the country. Many Regards Muhammad Ahmad rawallay@gmail.com<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote"> AOA Muhammad Ahmad May you please be clarify on that about which institute you want to know 1. ICSP (Institute of Corporate Secretaries of Pakistan) or 2.ICG (Institute of Corporate Governace) if about 1.ICSP so visit www.icsp.org.pk and after your visit if you have still have any query/question please post here Regards Mahtab - Muhammad Ahmad - 05-08-2006 AOA Mahtab Sorry for inconvinience. I was asking about ICG. Thanks Muhammad Ahmad - ausmanpk2001 - 05-09-2006 AOA *************************** Regards Usman - asif143bd - 05-24-2006 Dear Mahtab, Can you please tell me whether there is any official website for "Pakistan Institute of Corporate Governance" if you have then please let me know. Thanks Asif - Muhammad Ahmad - 05-24-2006 AOA i think there no such link. you may find som information at the site of SECP regards - Mahtab - 02-13-2007 I am agree with you Muhammad ahmad - maazullah - 02-14-2007 AOA to all friends, My name is Maazullah. I am doing my PhD from netherlands. i just wanted to confirm if pakistan institute of corporate governance has formulated a framework for corporate governance rating (CGR)? Please anyone of you email me the relvant material on CGR especially the methodology used for rating. i need it for my research. if there is any research paper investigating the impact of CGR on firm's value, then plz email it to me at maazullah@gmail.com thank you very much. Maaz - Asifkhan - 02-23-2007 <blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Mahtab</i> <br />I am agree with you Muhammad ahmad <hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote"> Dear Mahtab, Guess you are the one who initiated discussion with regards to corporate governance therefore, would appreciate if you kindly advise us who should we contact in case anyone of us wants to join this institute? Regards, Asif |