SECP Introduces Category Voting FAQs

APP

Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has released a comprehensive set of frequently asked questions (FAQs) regarding the newly introduced concept of category-wise voting for the election of directors.

This innovative concept emerged from recent amendments in the Listed Companies (Code of Corporate Governance) 2019, as outlined in a press release issued on Monday.

The primary objective behind introducing category-wise voting is to tackle practical challenges encountered by listed companies during the election processes for independent and female directors. This initiative ultimately aims to foster diversity within the boards of listed companies.

In light of these regulatory changes, the SECP has issued FAQs to offer additional guidance to stakeholders. These FAQs delve into crucial aspects such as the computation of votes for each category and procedures to be followed in unopposed elections within a specific category.

The intent behind these FAQs is to simplify the comprehension of the regulatory framework, address common queries, and streamline the implementation of the category voting system. This strategic step is anticipated to elevate corporate governance standards, ensuring greater diversity on the boards of listed companies and advocating for increased inclusion of women in leadership roles.

These informative FAQs are conveniently accessible on the SECP website, serving as a valuable resource for easy reference and guidance.