Ms. Ayla Majid

Report
Is Corporate Governance only a
Fad…Fashionable…or a bore!!
Ayla Majid
CEO CAMCO (Pvt) Limited
(Corporate Member of Islamabad Stock Exchange)
Why….
• Color Blue fashionable and sells
• Acai Berrys
• Omega III
Code of Corporate Governance 2012
• Board composition
– Executive and Non Executive
– Independent Directors (1 ..preferably 1/3rd)
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Maximum directorships one can have = 7
System of controls – internal controls
Board has to evaluate itself within 2 years
CEO and Chairman cannot be same person
Code of Corporate Governance 2012
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Directors Training Program
Role of CFO and Company Seretary
Related Party transactions – disclosures
Corporate Reporting Framework
Board Committees – HR and Audit
External auditots – 5 years rotation
Statement of Compliance of code
IFC CG Survey 2010
Findings….At a Global Level
• Recent financial crises have elevated the
importance of good governance.
• Specific corporate governance-related reforms
could make countries more attractive
investment destinations.
• Emerging market investors believe that better
firm- level governance can make up for
country weaknesses in corporate governance.
IFC CG Survey 2010
Findings….For emerging market fund
investment decisions
• Corporate governance is a critical factor in
emerging market investment decisions
• Investors are willing to pay a premium for
better-governed emerging market firms
IFC CG Survey 2010
Findings….Company Specific
• Investors often do not invest in emerging market
companies with poor governance
• Lack of transparency is a red flag for emerging
market investors
• Board independence is a low-level concern for
emerging market investors
What is happening……!!
Enhance shareholder and stakeholder value
Needs an asessment….
If its fashionable… it needs a cntinous change
and that will be based on asessment…
Research on the impact… is it really helpful??

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