PSCs (Corporate Governance) Rules, 2013: SECP says applicable to 130 PSEs and government-owned entities

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The Public Sector Companies (Corporate Governance) Rules, 2013 of the Securities and Exchange Commission of Pakistan (SECP) will be applicable to 130 public sector companies and government owned enterprises including power distribution and generation companies.

Sources told Business Recorder here on Thursday that the rules would be applicable to Pakistan Steel, gas companies, NICL, power distribution and generation companies and all other government owned enterprises. Explaining the Public Sector Companies (Corporate Governance) Rules, 2013, sources said that the legally "Public Sector Company" means a company, whether public or private, which is directly or indirectly controlled, beneficially owned or not less than fifty percent of the voting securities or voting power of which are held by the Government or any instrumentality or agency of the Government or a statutory body, or in respect of which the Government or any instrumentality or agency of the Government or a statutory body, has otherwise power to elect, nominate or appoint majority of its directors.

These rules shall apply to all Public Sector Companies, whether listed or unlisted, including associations not for profit, licensed under section 42 of the Companies Ordinance. In the case of listed Public Sector Companies, any provision contained in these Rules shall be applicable even if it is not contained in the Code of Corporate Governance.

The Board (board of directors of a Public Sector Company) shall consists of executive and non-executive directors, including independent directors and those representing minority interests with the requisite range of skills, competence, knowledge, experience and approach so that the Board as a group includes core competencies and diversity considered relevant in the context of the company's operations. The Board shall have forty percent of its total members as independent directors within two years of this notification and shall have a majority of independent directors subsequently. The Public Sector Company shall disclose in the annual report non-executive, executive and independent directors.

Courtesy: Business Recorder

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