SECP temporarily relaxes condition

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has granted a temporary general relaxation / exemption to listed companies from appointment of female director on their board of directors as required under Regulation 7 of the Listed Companies (Code of Corporate Governance) Regulations, 2017, a statement said on Friday.

The regulations were notified vide SRO 1216 (I)/2017 dated November 22, 2017, to come into effect on January 1, 2018, it added. Regulation 7 requires that the BoD would 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 these regulations, whichever is later.

The SECP received numerous applications from listed companies subsequent to the notification of the regulations, seeking exemptions / relaxation from Regulation 7 where the board of the company was reconstituted immediately after the commencement of the regulations, but before the expiry of one year from the effective date the regulations.

They argued that it was not feasible to change the board of director’s structure halfway, the statement said.