Pakistan forms institute of corporate governance

[Mahtab]

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;

ICSP;ICSM;ICMAP;KSE;LSE;ISE"

Regards

Mahtab