Requirements of corporate governance rules: ECC grants exemption to 19 subsidiaries of PNSC

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has granted exemption to 19 subsidiary companies of PNSC from the requirements of sub rule (3) of rule-24 of Public Sector Companies (Corporate Governance Rules), 2013, till June 2021, well-informed sources told Business Recorder.

Ministry of Maritime Affairs, sources said, recently proposed that since the powers to grant exemption rest with federal government, the ECC may grant requisite exemption to 19 subsidiary Companies of PNSC from the requirements of the sub rule (3) of rule-24 of Public Sector Companies (Corporate Governance) Rules as advised by the SECP/Finance Division.

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The ECC headed by Finance Minister Shaukat Tarin discussed the proposal of Ministry of Maritime Affairs threadbare but agreed to grant exemption for a specific period.

After detailed discussion it was decided to grant exemption to 19 subsidiary companies of PNSC from the requirements of sub rule (3) of rule-24 of Public Sector Companies (Corporate Governance) Rules as advised by the SECP/Finance Division, till June 2021.

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The ECC also directed Ministry of Maritime Affairs/PNSC to seek legal opinion from a law firm of international repute on the issue of grant of exemptions to subsidiary companies of PNSC vis-à-vis prevailing international and local relevant laws with an angle to avoid possibility of international litigation. A report in this regard shall be submitted to the ECC within a period of six months.

Copyright Business Recorder, 2021