Question

Pakistan's code of corporate governance was updated in 2019. Do you consider it an improvement for the country's code of governance or not?

Answer 1

Yes, The updated corporate governance code is an improvement over the previous one. The new code determines that the chairman and the CEO of the company shall not be the same person. The election of the chairman is only possible after he or she has is subjected to the rules and regulations and responsibilities under the new regulation.

The board of directors have been given the responsibility to appoint, renew the contract of the board of directors and company secretary.

Under the new regulation, two or one third of the members of the board of directors are independent directors. The board of directors should have atleast one female executive. The board of directors are responsible for determining the level of risk tolerance by setting up appropriate risk management polices.

Yes, it is improvement of the country's code of governance.