04-25-2006, 06:35 PM
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
"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