INTRODUCTION
Securities and Exchange Commission of Pakistan (SECP) vide Circular # 3 of 2019 dated February 25, 2019, notified relaxation from requirement of Regulation # 7 of the Listed Companies (Code of Corporate Governance) Regulations, 2017 (afterwards referred as “Regulations”).
Regulation # 7 required that, the Board of Directors (BOD) shall have at least one female director when it is next reconstituted not later than expiry of its current term or within the next one year from the effective date of this regulations, whichever is later.
COMMENTARY
As explained in circular that SECP received application seeking exemption/relaxation from Regulation # 7 of the regulations, and in order to facilitate and understanding the impediments involved, SECP granted general relaxation/exemption to listed companies where BoD was reconstituted after the commencement of the Regulations but before the expiry of one year from the effective date of Regulations.
Therefore, all such listed companies shall appoint a female director on their respective BoD in following instances: –
- On the Date of Next Election of BoD; or
- On Occurrence of a casual vacancy on the BoD before the date of next election of BoD.
All such companies shall ensure compliance of the circular in due course.
LINK OF DOCUMENT
Please click below to read the original Circular
