The Securities and Exchange Commission of Pakistan (SECP) has issued practices guide for conducting board of directors and general meetings, a statement said on Tuesday.
The guide is recommendatory in nature; thereby, giving companies the liberty to develop their own procedures keeping in view the best practices, it added.
Meetings of board of directors and general meetings of shareholders are important decision-making forums where directors and shareholders deliberate and decide significant issues concerning the company; therefore, law impose certain conditions and restrictions for holding board and general meetings.
The SECP has proposed the guidebook keeping in view best practices for conducting board meetings and general meetings in the light of requirements of Companies Act, 2017, and regulations made thereunder.
This guide would facilitate the management of the companies, as well as shareholders in understanding their responsibilities under the law and ensuring orderly conduct of board meeting and general meeting, in particular.
Hence, it is important that companies adopt systematic and formal mechanism to conduct meeting of the board of directors and encourage shareholders to attend and actively participate in general meetings.