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) • • • • 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 • • • • • • • 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??