SECP clarifies director voting

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Monday issued a set of frequently asked questions (FAQs) to explain the concept of category-wise voting for the election of directors of listed companies, a move aimed at promoting board diversity and inclusion.

The SECP introduced the category-wise voting concept through amendments in the Listed Companies (Code of Corporate Governance) 2019, to address the challenges faced by listed companies in electing independent and female directors, a statement said.

"Following the regulatory amendments, SECP has issued FAQs to provide additional guidance to stakeholders and address common questions related to the implementation of this new concept. The FAQs explain important concepts such as the calculation of votes for each category, procedures for unopposed elections in a category etc."

These FAQs are expected to simplify the understanding of the regulatory context, address practical concerns, and facilitate the implementation of the category voting concept. This initiative is anticipated to contribute to the promotion of best standards of corporate governance, ensuring diversity on the boards of listed companies, and encouraging greater inclusion of women.