AIRLINK 68.40 Increased By ▲ 3.20 (4.91%)
BOP 5.58 Increased By ▲ 0.01 (0.18%)
CNERGY 4.50 Decreased By ▼ -0.06 (-1.32%)
DFML 25.71 Increased By ▲ 1.19 (4.85%)
DGKC 69.49 Decreased By ▼ -0.47 (-0.67%)
FCCL 20.15 Decreased By ▼ -0.15 (-0.74%)
FFBL 30.63 Increased By ▲ 1.52 (5.22%)
FFL 9.90 Increased By ▲ 0.07 (0.71%)
GGL 10.09 Increased By ▲ 0.08 (0.8%)
HBL 114.05 Decreased By ▼ -0.20 (-0.18%)
HUBC 130.60 Increased By ▲ 1.50 (1.16%)
HUMNL 6.71 No Change ▼ 0.00 (0%)
KEL 4.40 Decreased By ▼ -0.04 (-0.9%)
KOSM 4.84 Decreased By ▼ -0.05 (-1.02%)
MLCF 36.62 Decreased By ▼ -0.38 (-1.03%)
OGDC 132.60 Increased By ▲ 0.30 (0.23%)
PAEL 22.55 Increased By ▲ 0.01 (0.04%)
PIAA 25.70 Decreased By ▼ -0.19 (-0.73%)
PIBTL 6.65 Increased By ▲ 0.05 (0.76%)
PPL 113.50 Increased By ▲ 0.65 (0.58%)
PRL 29.16 Decreased By ▼ -0.25 (-0.85%)
PTC 15.12 Decreased By ▼ -0.12 (-0.79%)
SEARL 57.30 Increased By ▲ 0.27 (0.47%)
SNGP 65.99 Decreased By ▼ -0.46 (-0.69%)
SSGC 10.97 Decreased By ▼ -0.01 (-0.09%)
TELE 8.73 Decreased By ▼ -0.07 (-0.8%)
TPLP 11.57 Decreased By ▼ -0.13 (-1.11%)
TRG 68.68 Increased By ▲ 0.06 (0.09%)
UNITY 23.45 Increased By ▲ 0.05 (0.21%)
WTL 1.34 Decreased By ▼ -0.04 (-2.9%)
BR100 7,362 Increased By 67.1 (0.92%)
BR30 23,987 Increased By 132.9 (0.56%)
KSE100 70,693 Increased By 402.8 (0.57%)
KSE30 23,290 Increased By 118.8 (0.51%)

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), Tuesday, declared that no company’s director shall be considered independent if he/she has served on the board for more than three consecutive terms from the date of his/her first appointment.

The SECP has clarified the issue of independent directors of the companies through the issuance of circular number 5 of 2023 on Tuesday.

According to the SECP, in the exercise of powers conferred by section 510 of the Companies Act, 2017 (“the Act”), the Commission is hereby clarified the word “term” used in section 166(2)(g) of the Companies Act.

SECP registers 2,651 new companies in Jan

It is clarified that the Commission vide Guide Book on Corporate Governance dated June 05, 2020, and frequently asked questions (FAQs) has already explained that no director shall be considered as independent if he/she has served on the board for more than three consecutive terms from the date of his/her first appointment, however, such person may be deemed independent after a lapse of one term.

In order to remove any further ambiguity regarding the duration of the word “term”, it is clarified that in case of a director filling a casual vacancy for the remainder of term, shall be considered as appointed for a complete term.

All companies which are not in compliance with section I66(2)(g), shall comply with the aforementioned requirements and shall report such compliance to the Commission within sixty days of the date of this circular, the SECP added.

Copyright Business Recorder, 2024

Comments

Comments are closed.

M. A. Malik Feb 21, 2024 01:33pm
It's Circular No. 05 of 2024 instead of 05 of 2023 mentioned above
thumb_up Recommended (0)