December 18, 2023 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has issued a set of Frequently Asked Questions (FAQs) regarding the concept of category-wise voting for the election of directors, press release issued by the commission revealed on Monday.
This concept was recently introduced through amendments in the Listed Companies (Code of Corporate Governance) 2019.
The introduction of category-wise voting aims to address practical challenges faced by listed companies in the election of independent directors and female directors, ultimately promoting diversity on the boards of listed companies.
Following the regulatory amendments, SECP has issued FAQs to provide additional guidance to stakeholders and address common questions related to the implementation of this new concept.
The FAQs explain important concepts such as the calculation of votes for each category, procedures for unopposed elections in a category etc.
These FAQs are expected to simplify the understanding of the regulatory context, address practical concerns, and facilitate the implementation of the category voting concept.
This initiative is anticipated to contribute to the promotion of the best standards of corporate governance, ensuring diversity on the boards of listed companies, and encouraging greater inclusion of women.
