The governance standards are dynamic and changing with the development
of constantly evolving corporate sector and financial markets.
This calls for a constant review of the governance framework to keep
pace with global benchmarks. In an endeavor to align our governance
regime with enhanced requirements of the present times and global
best practices, the Securities and Exchange Commission of Pakistan
(SECP) has approved amendments to certain provisions of the Code of
Corporate Governance for listed companies.
The amendments have been made taking into account the lessons learnt
from the practical issues and considerations relevant to the listed
companies and to ensure that it reflects changing governance concerns,
practices and economic circumstances and best international practices.
The amended provisions relax eligibility requirements for the chief
financial officer (CFO) and the head of internal audit (HOIA) for
listed companies. The experience requirements of the CFO have been
reduced from five years of handling financial or corporate affairs of
a listed company or a bank/financial institution to three years of
experience in a public practice (audit/accounting) firm or in managing
financial/corporate affairs of a company. The experience requirements
for HOIA have also been reduced from the earlier restrictive five
years of relevant audit experience to three years in audit, finance or
compliance function. As per an earlier clarification issued by the
SECP, experience in a public practice (audit/accounting) firm would
also be considered relevant audit experience.
These amendments have been approved following a review focused
primarily on further refining practicality of the code for listed
companies. The said amendments are expected to improve compliance with
the code and encourage new entrants to the fields of finance, audit
and related functions, thereby expanding the existing talent pool of
professionals in the country.
Moreover, the mandatory condition of appointing an independent
director as chairman of the audit committee has been made voluntarily
to facilitate companies in appointing suitably qualified non-executive
directors as chairmen to the said committee.
of constantly evolving corporate sector and financial markets.
This calls for a constant review of the governance framework to keep
pace with global benchmarks. In an endeavor to align our governance
regime with enhanced requirements of the present times and global
best practices, the Securities and Exchange Commission of Pakistan
(SECP) has approved amendments to certain provisions of the Code of
Corporate Governance for listed companies.
The amendments have been made taking into account the lessons learnt
from the practical issues and considerations relevant to the listed
companies and to ensure that it reflects changing governance concerns,
practices and economic circumstances and best international practices.
The amended provisions relax eligibility requirements for the chief
financial officer (CFO) and the head of internal audit (HOIA) for
listed companies. The experience requirements of the CFO have been
reduced from five years of handling financial or corporate affairs of
a listed company or a bank/financial institution to three years of
experience in a public practice (audit/accounting) firm or in managing
financial/corporate affairs of a company. The experience requirements
for HOIA have also been reduced from the earlier restrictive five
years of relevant audit experience to three years in audit, finance or
compliance function. As per an earlier clarification issued by the
SECP, experience in a public practice (audit/accounting) firm would
also be considered relevant audit experience.
These amendments have been approved following a review focused
primarily on further refining practicality of the code for listed
companies. The said amendments are expected to improve compliance with
the code and encourage new entrants to the fields of finance, audit
and related functions, thereby expanding the existing talent pool of
professionals in the country.
Moreover, the mandatory condition of appointing an independent
director as chairman of the audit committee has been made voluntarily
to facilitate companies in appointing suitably qualified non-executive
directors as chairmen to the said committee.
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