Securities & Exchange Commission of Pakistan has issued a practices guide for conducting board meetings and general meetings. This much-needed guide will pave way for improvement in corporate conduct, governance, and compliance with the applicable laws. It is will increase transparency in corporate functions and smoothen the procedural aspects of corporate management. Adherence to the guidelines provided in the document will improve the efficiency of secretarial functionaries.
For board meetings the document provides guidance on the preparation of agenda, convening of meetings, a quorum of meetings. Further, it provides for disclosure of interests by the directors, as required under the law, and conduct of directors in the meetings. Lastly, it provides guidance on recording minutes with clarity and accuracy.
On the other hand, for general meetings, which is of more interest to members/shareholder, the document provides guidance with respect to entitlement to attend meetings and notices. Going further, it provides guidance on the meetings that should be conducted. Further, it guides the obligations of companies with respect to general meetings and the rights and responsibilities of members/shareholders. It encourages active participation by members in the proceedings and requires recoding of minutes of the proceedings in a proper manner.
Lastly in the annexure, the document describes legal provisions related to board meetings and general meetings.
The document is a must-read for corporate managers, shareholders/members, and other stakeholders. It is hoped that adherence to the practices guide will improve corporate compliance and governance. To read for guidance click the link.
