Pakistan forms institute of corporate governance

[Mahtab]

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