The Securities and Exchange Commission of Pakistan (SECP) has introduced significant amendments to the Listed Companies (Code of Corporate Governance) Regulations, 2019, and the Companies (Postal Ballot) Regulations, 2018. These changes are part of SECP’s efforts to protect shareholder rights, improve corporate governance, and maintain market integrity.
The reforms eliminate the category-wise voting scheme, aiming to enhance minority shareholders’ representation on company boards. Additionally, the scrutinizer’s role in accepting or rejecting nominations for directors and proxies has been expanded to ensure transparency.
To further strengthen governance, the SECP now mandates director attendance at general meetings and encourages external evaluations of board performance. These changes follow recommendations from a committee of market experts and stakeholders, with extensive public consultations conducted on the proposals.
The updated regulations are available on the SECP website, reflecting the organization’s commitment to fostering a transparent and equitable corporate environment.