Download - Siemens Pakistan

120 Statement of Compliance
Statement of Compliance with the
Best Practices of Code of Corporate Governance
This statement is being presented to comply with the requirements of the Code of Corporate Governance
(the Code) as incorporated in the listing regulations of the stock exchanges of Pakistan. The Code provides a
framework of best practices of Corporate Governance. Good Governance is considered indispensable by the
Board to enhance and achieve highest performance. The Company has applied the principles contained in
the Code in the following manner:
1. The Company encourages representation of independent non-executive directors. The Board
comprises of eight directors which include three independent non-executive directors, one of whom
is the Chairman. Two directors represent the National Investment Trust Limited (NIT).
2. All the directors have given declaration that they were aware of their duties and powers under the
relevant laws and the Company’s Memorandum and Articles of Association and the listing regulations
of the stock exchanges of Pakistan.
3. The directors of the Company have confirmed that none of them is serving as a director in more than
ten listed companies including this company.
4. All the resident directors of the Company are registered taxpayers and none of them has defaulted in
payment of any dues to any banking company, a DFI or NBFI.
5. None of the directors or their spouses are engaged in business of stock brokerage.
6. Three casual vacancies occurred during the year, which were duly filled within thirty days of their
occurrence.
7. The Company has adopted a Statement of Ethics & Business Practices which has been signed by all the
directors and employees of the Company.
8. The Board of Directors has developed a Vision and Mission Statement. All significant policies have
been approved by the Board and compiled in the Company’s Policy Manual. The level of materiality has
also been defined by the Board.
9. All the powers of the Board have been duly exercised and decisions on material transactions have been
taken by the Board. The appointment, remuneration and terms and conditions of employment of the
Chief Executive Officer and the Chief Financial Officer have been determined and approved by the
Board of Directors. Further, the appointment, remuneration and terms and conditions of employment
of the Head of Internal Audit and the Company Secretary have been determined by the Chief Executive
Officer with the approval of the Board of Directors.
10. The roles and responsibilities of the Chairman and the Chief Executive Officer are clearly defined.
11. The meetings of the Board are presided over by the Chairman and, in his absence, by a director elected
by the Board for this purpose.
12. The Board meets at least once in every quarter.
13. Written notices and agenda of Board Meetings are circulated not less than seven days before the
meetings.
14. The Minutes of the Board Meetings are appropriately recorded, signed by the Chairman and circulated
within 14 days from the date of meetings.
15. The Company provided information to foreign resident directors of their duties and responsibilities.
Other directors of the Company, being professionals and directors of other local companies have
adequate exposure of corporate matters and are already aware of their duties and responsibilities.