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    Corporate Governance-As Defined by SECP (Pakistan)

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    tehreem

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    Corporate Governance-As Defined by SECP (Pakistan)

    Uploaded by

    tehreem
    82 views1 page

    Original Title

    Corporate Governance-SECP

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    82 views1 page

    Corporate Governance-As Defined by SECP (Pakistan)

    Uploaded by

    tehreem

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Corporate Governance- As defined by SECP (Pakistan)

    Corporate governance is the system by which companies are directed and controlled. The
    corporate governance structure specifies the distribution of rights and responsibilities among
    different participants in the company, such as, the board of directors, management,
    shareholders and other stakeholders and spells out the rules and procedures for making
    decisions in corporate affairs. By doing this, it also provides the structure through which the
    company objectives are set and the means of attaining those objectives and monitoring
    performance.

    Corporate governance includes the relationship of a company to its shareholders and to


    society; the promotion of fairness, transparency and accountability; reference to mechanisms
    that are used to “govern” managers and to ensure that the actions taken are consistent with
    the interests of key stakeholder groups. The key points of interest in corporate governance
    therefore include issues of transparency and accountability, the legal and regulatory
    environment, appropriate risk management measures, information flows and the responsibility
    of senior management and the board of directors.

    The primary goal of corporate governance is to protect shareholders and other stakeholders
    from corporate and managerial misconduct. Effective corporate governance measures are
    essential to prevent corporate scandals, fraud, and potential civil and criminal liability. Such
    measures enhance the reputation of an organization and makes it more attractive to investors,
    creditors, consumers, and donors. On the other hand, bad corporate governance can create an
    environment conducive to fraud and ultimately lead to the demise of an organization and
    significantly harm its stakeholders.

    Whether a company is private, public, nonprofit, or government, all those charged with its
    governance should assess their structure and needs to develop an effective corporate
    governance approach. The underlying goal in a corporate governance system is to ensure that
    the decision makers in a company, such as its directors and management, are acting in the best
    interests of the company’s stakeholders.

    In order to achieve its Vision, SECP has designed and implemented a strategy to develop into an
    efficient and dynamic regulatory body that fosters principles of good governance in the
    corporate sector, ensures proper risk management procedures in the capital market, and
    protects investors through responsive policy measures and effective enforcement practices.
    SECP has issued corporate governance frameworks for designated classes of companies
    including listed companies, public sector companies, and insurance companies, for mandatory
    compliance.

    Link: https://www.secp.gov.pk/corporate-governance/corporate-governance/

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