PRESENTATION ON CODE

OF CORPORATE
GOVERNANCE
GROUP MEMBER

MUZAMMIL

ABDUL AZIZ

MUHAMMAD IMRAN
What is Corporate Governance?
Govern

To rule by right of authority

To direct, guide, control, infuence!!

Governance

The e"erci#e of direction, authority and

control
What is Management
Manage

To conduct $the day%to%day& bu#ine##

To bring about or #ucceed in acco'(li#hing a ta#)

To ad'ini#ter and #u(er*i#e $the function# of

'anage'ent&
Management

+! The organi,ing and controlling of the a-air# of a

bu#ine## or a (articular #ector of a bu#ine##

.! The act of conducting bu#ine##/ bringing about or

#ucceeding in acco'(li#hing a ta#)!

What CG does ?

0or(orate go*ernance (ro*ide# the #tructure

for #hareholder# to de1ne, i'(le'ent and
'onitor a co'(any2# goal# and ob3ecti*e#,

4hile the 'anage'ent i# re#(on#ible for

deli*ering on tho#e goal# and ob3ecti*e#!

To (ut it in *ery #i'(le ter'#, the board of

director# 'a)e# (olicy, and 'anage'ent
carrie# it out!
Role of Board and Management?
Board re#(on#ibilitie#, according to 560D include7

8De*elo( the co'(any2# (ur(o#e, *i#ion, *alue#

89uide #trategy

85*er#ee 'anage'ent

8No'inate )ey e"ecuti*e#

8Align re'uneration of board and )ey e"ecuti*e#

4ith long ter'

intere#t# of the co'(any

86n#ure that (ro(erly #u(er*i#ed control# are in

(lace

85*er#ee di#clo#ure and co''unication#

Role of Board and Management?

The #enior 'anage'ent tea', by contra#t,

hold# #(eci1c e"ecuti*e (o4er# of 'anaging
the day%to%day bu#ine## of the co'(any and
i# accountable to the board for the (ro(er
ful1ll'ent of it# de#ignated function#, ta#)#
and #trategic and o(erational ob3ecti*e#!

The highe#t le*el# of #enior 'anage'ent

$ty(ically, the chief e"ecuti*e o:cer& 'ay al#o
#it on the board of director#, in 4hich ca#e,
they are referred to a# e"ecuti*e director#!;
<ey Bene1t# of good 09

=hareholder# enhanced con1dence

Tran#(arency

9reater and chea(er #ource of 0a(ital Borro4ing#

9reater 1nancial #ector #tability

>a#ter cor(orate #ector gro4th and 3ob creation

Better (rotection for all in*e#tor#, including (en#ion

bene1ciarie#

Acti*e 0a(ital Mar)et# bene1cial to 'inority

#hareholder#

9ood cor(orate go*ernance (ractice# lead to better

co'(anie# and, in turn, better #ocietie#

Key Parameters of CG

9ood Board ?ractice#!

=hareholder Right#!

0ontrol 6n*iron'ent!

Di#clo#ure @ Tran#(arency!

0o''it'ent
Core Values of good CG

Re#(on#ibility

Accountability

Integrity

>airne##

Tran#(arency

Hone#ty

Tru#t

La4 abiding

0o''unication
What SCP says a!out Code

Ahat =60? #ay# about 0ode The 0ode #et#

'ini'u' bench'ar) in ter'# of go*ernance
#tandard#, bring# con#i#tency in cor(orate
(ractice# and (ro'ote# tran#(arency through
enhanced di#clo#ure reBuire'ent#!

The 0ode 4ill re#ult in a*ailability enhanced

infor'ation to 'ar)et# (artici(ant# and hence
4ill (ro*ide better (rotection of the right# of
all in*e#tor#, (articularly 'inority
#hareholder#!
Key Components of CCG
0o'(o#ition and relation#hi( a'ong

Board

0o''ittee# of Board

0hair'en of Board and 0o''ittee#

065

Manage'ent

Internal Audit

0>5

0or(orate =ecretary
Composition of Board

The board of director# i# encouraged to ha*e a

balance of e"ecuti*e and non e"ecuti*e director#

Including inde(endent director# and tho#e

re(re#enting 'inority

intere#t# 4ith the reBui#ite #)ill#, co'(etence,

)no4ledge and e"(erience #o that the board a# a
grou( include# core co'(etencie# and di*er#ity,
including gender, con#idered rele*ant in the
conte"t of the co'(anyC# o(eration#!

At lea#t one inde(endent director and not 'ore

than one third of e"ecuti*e director# including 065
Responsi!ilities" po#ers and
functions
The board of director# of a li#ted co'(any #hall
en#ure
that7

(rofe##ional #tandard# and cor(orate *alue#

are (ut in (lace that (ro'ote integrity for the
board

adeBuate #y#te'# and control# are in (lace

for identi1cation and redre## of grie*ance#
ari#ing fro' unethical (ractice#!

the board of director# #hall de1ne the le*el of

'ateriality
$he signi%cant policies may include&

go*ernance, ri#) 'anage'ent and co'(liance i##ue#/

hu'an re#ource 'anage'ent including (re(aration of a

#ucce##ion (lan/

(rocure'ent of good# and #er*ice#/

in*e#tor#C relation# including but not li'ited to general

in*e#tor a4arene##, co'(laint# and co''unication,

etc!/

'ar)eting/

deter'ination of ter'# of credit and di#count to

cu#to'er#/

4rite%o- of badDdoubtful debt#, ad*ance# and

recei*able#/
$he signi%cant policies may include&

ca(ital e"(enditure, (lanning and control

in*e#t'ent# and di#in*e#t'ent of fund#

borro4ing of 'oney#/

deter'ination and delegation of 1nancial (o4er#/

tran#action# or contract# 4ith a##ociated co'(anie#

and related (artie#

the cor(orate #ocial re#(on#ibility $0=R& initiati*e# and

other (hilanthro(ic acti*itie# including donation#,
charitie# contribution# and other (ay'ent# of a #i'ilar
nature/ health, #afety and en*iron'ent/ and

the 4hi#tleblo4er (olicy

$he Chairman and C'

The 0hair'an and the 0hief 6"ecuti*e 5:cer

$065&, by 4hate*er na'e called, #hall not be
the #a'e (er#on e"ce(t 4here (ro*ided for
under any other la4!

The 0hair'an #hall be elected fro' a'ong

the none"ecuti*e director# of the li#ted
co'(any

The Board of Director# #hall clearly de1ne the

re#(ecti*e role# and re#(on#ibilitie# of the
0hair'an and 065!
('RM)$*'+ '( B')R, C'MM*$$
The board #hall #etu( the follo4ing co''ittee#

Audit 0o''ittee

Ri#) 'anage'ent 0o''ittee

Hu'an Re#ource# 0o''ittee

?rocure'ent 0o''ittee

No'ination co''ittee
Board Committees
Hu'an Re#ource @ Re'uneration

Min E 'e'ber#,

Ma3ority N6D, + (referably inde(endent

065 canCt be chair'an of the co''ittee

Audit

Min E N6D,

0hair'an Inde(endent,

Board 0hair'an 0anCt be Audit 0o''ittee 0hair'an

At lea#t one 'e'ber to ha*e 1nancial #)ill#D

e"(erti#e
Meetings of the Board
The chair'an of the li#ted co'(any #hall

?re#ide o*er 'eeting# of the board of

Director#

Meet at lea#t once in the e*ery Buarter on the

1nancial year

6n#ure that 'inute# of the 'eeting of the

board of director# are a((ro(riately recorded
Responsi!ility of -R . R Committee

reco''ending hu'an re#ource 'anage'ent (olicie#

to the board/

reco''ending to the board the #election, e*aluation,

co'(en#ation $including retire'ent bene1t#& and
#ucce##ion (lanning of the 065/

reco''ending to the board the #election, e*aluation,

co'(en#ation $including retire'ent bene1t#& of 055,
0>5, 0o'(any =ecretary and Head of Internal Audit/
and

i*& con#ideration and a((ro*al on reco''endation#

of 065 on #uch 'atter# for )ey 'anage'ent (o#ition#
4ho re(ort directly to 065 or 055!
)udit Committee $erms of Reference

The Board #hall (ro*ide adeBuate re#ource# and

authority to enable the Audit 0o''ittee carry
out it# re#(on#ibilitie# e-ecti*ely!

The Audit 0o''ittee #hall, inter alia,

reco''end to the Board of Director# the
a((oint'ent of e"ternal auditor#, their re'o*al

re*ie4 of Buarterly, half%yearly and annual

1nancial #tate'ent# of the li#ted co'(any and
focu#ing on, 'a3or 3udg'ental area#, the going
concern a##u'(tion, any change# in accounting
(olicie# and (ractice#
)udit Committee Meetings

The Audit 0o''ittee of a li#ted co'(any #hall

'eet
at lea#t once e*ery Buarter of the 1nancial year

The#e 'eeting# #hall be held (rior to the

a((ro*al of interi' re#ult# of the li#ted co'(any
by it# Board of Director# and before and after
co'(letion of e"ternal audit!

A 'eeting of the Audit 0o''ittee #hall al#o be

held, if reBue#ted by the e"ternal auditor# or the
Head of Internal Audit
*+$R+)/ )0,*$'R

There #hall be an internal audit function in

e*ery
?ublic =ector 0o'(any! The chief internal
auditor, 4ho i# the head of the internal audit
function in the ?ublic =ector 0o'(any, #hall
be accountable to the audit co''ittee and
ha*e unre#tricted acce## to the audit
co''ittee!
1$R+)/ )0,*$'R

6*ery ?ublic =ector 0o'(any #hall en#ure

that it# annual account# are audited by
e"ternal auditor#, a# en*i#aged under #ection
.F. of the 5rdinance! Ahen carrying out audit
of a ?ublic =ector 0o'(any, the e"ternal
auditor# #hall ta)e into account the #(eci1c
reBuire'ent# of any other rele*ant
regulation#, ordinance# or 'ini#terial
directi*e# 4hich a-ect the audit 'andate and
)ppointment and removal of C('" CS
. -*)

The a((oint'ent, re'uneration and ter'# and

condition# of e'(loy'ent of the 0hief >inancial
5:cer $0>5&, the 0o'(any =ecretary and the Head
of Internal Audit of li#ted co'(anie# #hall be
deter'ined by the board of director#

The re'o*al of the 0>5 and 0o'(any =ecretary of

li#ted co'(anie# #hall be 'ade 4ith the a((ro*al of
the board of director#

The re'o*al of Head of Internal Audit #hall be 'ade

4ith the a((ro*al of the board only u(on
reco''endation of the 0hair'an of the Audit
0o''ittee
2uali%cations of C('

a 'e'ber of a recogni,ed body of

(rofe##ional accountant#

ha# a (o#tgraduate degree in 1nance fro' a

recogni,ed uni*er#ity or eBui*alent
C(' and CS to attend Board Meetings

The 0>5 and 0o'(any =ecretary of a li#ted

co'(any or in their ab#ence, the no'inee,
a((ointed by the board, #hall attend all
'eeting# of the Board of Director#! ?ro*ided
that the 0>5 and 0o'(any =ecretary #hall not
attend #uch (art of a 'eeting of the Board of
Director#, 4hich in*ol*e# con#ideration of an
agenda ite' relating to the 0>5 and 0o'(any
=ecretary re#(ecti*ely
THANKING YOU