Regulatory Alerts2019-09-30
Added · Updated
Listed Companies (Code of Corporate Governance) Regulations, 2019
These Regulations establish mandatory and discretionary corporate governance standards for listed companies in Pakistan, applying a comply-or-explain approach. Key requirements include limiting directorships to seven listed companies, ensuring board diversity, and mandating that independent directors constitute at least one-third or two members, whichever is higher. The rules also require separate voting categories for female and independent directors, restrict executive directors to one-third of the board, and prohibit the Chairman and CEO from being the same person. Additionally, the regulations define specific qualifications for the Chief Financial Officer, outline board responsibilities regarding risk management and related party transactions, and set training certification deadlines for directors.