Directorship of Companies & Corporate Governance

[awaisaftab]

Dear Wasim and Malik,

I know about some persons who hold directorship in many companies, I don't know what is law in other countries in this regard. But in my opinion the number of companies whose a person can become director should must be reduced.
Accountants are followers of law but as a group of persons, which follow and respect law, we have to also point out the shortcoming and deficiencies of law to protect the rights of ignored,helpless and innocent sections of society i.e. minority shareholders.

It is cruel reality the rights of minority shareholders and investors are badly exploited by the BIG CROCODILES of capital market and corporate sector.
In the beginning of 2005 some big investors of Karachi, Islamabad and Lahore stock exchanges created an artificial boom in the capital market with the help of some director of companies, who had directorship in many companies. On making huge investment by the small investors and shareholders they withdrawn their funds and small investors suffer a lot many. The SECP was unable to protect the rights of investors in the whole story.


Regards,

Awais