SECP introduces key reforms in corporate governance rules

March 28, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has made amendments to the Listed Companies (Code of Corporate Governance) Regulations, 2019, and the Companies (Postal Ballot) Regulations, 2018.

These amendments align with SECP’s commitment to safeguarding shareholders' rights, enhancing corporate governance practices, and upholding market integrity.

Under these reforms, the category-wise voting scheme has been omitted to support minority shareholders’ representation on the board.

Additionally, the role of the scrutinizer has been strengthened to bring transparency to the process of accepting or rejecting nominations for the election of directors and proxies, as per the press release issued today.

Further reforms aim to enhance corporate governance by mandating directors' attendance at general meetings and encouraging independent evaluations of board performance by an external body.

Earlier, SECP constituted a committee comprising market experts and relevant stakeholders to improve transparency and the conduct of shareholders’ meetings.

Extensive public consultation was carried out on the committee’s report, leading to the proposed reforms.

Public consultation was also conducted on the amendments before their finalization.

The amendments to the Listed Companies (Code of Corporate Governance) Regulations, 2019, and the Companies (Postal Ballot) Regulations, 2018, are available on the SECP website.

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