The Securities and Exchange Commission of Pakistan (SECP) has directed Pakistan Stock Exchange Limited (PSX) to complete the requirement for number of directors and hold elections for shareholder directors in accordance with the Companies Act 2017. SECP’s directive has been issued to ensure good governance and for the true representation of shareholders on the PSX board.
The law requires that the board of a securities exchange comprise of a CEO, independent directors and shareholder directors. The number of independent directors on the board shall not be less than the shareholder directors.
In accordance with SECP’s orders, the newly elected shareholder directors, along with the existing independent directors, shall nominate new independent directors.
The protection of minority investors remains SECP’s priority. As a result of the Commission’s decision, the representation of minority shareholders, comprising the general public, will also come into effect. The process has to be completed by February 28, 2018.