Attendance of Directors in the Board Meetings through
Attendance of Directors in the Board Meetings through
Attendance of Directors in the Board Meetings through
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SECURITIES & EXCHANGE COMMISSION OF PAKISTAN<br />
Company Law Division<br />
Enforcement Department<br />
No. EMD/D(A/C)/17/03 Islamabad, October 17, 2005<br />
CIRCULAR NO. 18 /2005<br />
Sub: <strong>Attendance</strong> <strong>of</strong> <strong>Directors</strong> <strong>in</strong> <strong>the</strong> <strong>Board</strong> Meet<strong>in</strong>gs <strong>through</strong> Tele/Video Conferenc<strong>in</strong>g<br />
In pursuance <strong>of</strong> <strong>the</strong> Commission’s decision, listed companies were permitted to hold <strong>the</strong>ir <strong>Board</strong> <strong>of</strong><br />
<strong>Directors</strong> meet<strong>in</strong>g <strong>through</strong> video conferenc<strong>in</strong>g when <strong>the</strong> directors <strong>of</strong> a company are not available <strong>in</strong><br />
Pakistan. Circular No. 30 <strong>of</strong> 2003, dated 31.12.2003, was issued by <strong>the</strong> Commission <strong>in</strong> this regard.<br />
In partial modification <strong>of</strong> <strong>the</strong> above mentioned circular, <strong>the</strong> revised circular should now be read as<br />
follows:-<br />
“A few listed companies particularly <strong>the</strong> mult<strong>in</strong>ationals have approached this Commission to allow<br />
hold<strong>in</strong>g <strong>of</strong> <strong>the</strong> <strong>Board</strong> <strong>of</strong> <strong>Directors</strong>’ meet<strong>in</strong>gs <strong>through</strong> tele/video conferenc<strong>in</strong>g as and when some<br />
members <strong>of</strong> <strong>the</strong>ir <strong>Board</strong> are not available <strong>in</strong> <strong>the</strong> country. This Commission, <strong>in</strong> view <strong>of</strong> this practical<br />
problem, feels that hold<strong>in</strong>g <strong>of</strong> <strong>Board</strong> meet<strong>in</strong>gs <strong>through</strong> tele/video conferenc<strong>in</strong>g would facilitate <strong>the</strong><br />
companies whose directors sometimes f<strong>in</strong>d it diffic ult to travel to Pakistan for participat<strong>in</strong>g <strong>in</strong> <strong>the</strong><br />
meet<strong>in</strong>gs due to <strong>the</strong>ir busy schedules. This would also ease pressure on <strong>the</strong> directors <strong>of</strong> companies<br />
who have to attend quarterly <strong>Board</strong>’s meet<strong>in</strong>gs and audit committee’s meet<strong>in</strong>gs as per <strong>the</strong><br />
requirements <strong>of</strong> <strong>the</strong> Companies Ord<strong>in</strong>ance, 1984 and <strong>the</strong> Code <strong>of</strong> Corporate Governance. Besides, <strong>the</strong><br />
use <strong>of</strong> modern technologies would also be cost effective and would ensure participation <strong>of</strong> almost all<br />
<strong>the</strong> directors <strong>in</strong> such meet<strong>in</strong>gs. This would also help <strong>in</strong> achiev<strong>in</strong>g <strong>the</strong> objectives <strong>of</strong> good Corporate<br />
Governance. It has, <strong>the</strong>refore, been decided to allow <strong>the</strong> listed companies to hold <strong>the</strong>ir <strong>Board</strong>’s<br />
meet<strong>in</strong>gs <strong>through</strong> tele/video conferenc<strong>in</strong>g where it is not possible for <strong>the</strong> directors to be physical<br />
present at <strong>the</strong> venue <strong>of</strong> <strong>the</strong> meet<strong>in</strong>g. Moreover, such meet<strong>in</strong>g shall be valid if <strong>the</strong> m<strong>in</strong>utes <strong>of</strong> such<br />
meet<strong>in</strong>g has been approved and signed subsequently by all directors <strong>of</strong> <strong>the</strong> <strong>Board</strong> who participated <strong>in</strong><br />
such meet<strong>in</strong>g. The listed companies are, however, advised to avail this facility only <strong>in</strong> emergent<br />
situations and <strong>the</strong> requirements <strong>of</strong> <strong>the</strong> requisite quorum and o<strong>the</strong>r legal formalities relat<strong>in</strong>g to hold<strong>in</strong>g<br />
<strong>of</strong> such meet<strong>in</strong>gs must be observed strictly. It would also be <strong>the</strong> responsibility <strong>of</strong> <strong>the</strong> company’s<br />
7 th Floor, NIC Build<strong>in</strong>g, J<strong>in</strong>nah Avenue, Blue Area, Islamabad<br />
PABX: 9207091-4, Fax No. 9218592 & 9204915, Email: webmaster@secp.gov.pk Website: www.secp.gov.pk
secretary to secure <strong>the</strong> tele/video record<strong>in</strong>g <strong>of</strong> <strong>the</strong> proceed<strong>in</strong>gs <strong>of</strong> <strong>the</strong> meet<strong>in</strong>gs and keep it <strong>in</strong> his<br />
custody along with <strong>the</strong> o<strong>the</strong>r relevant record”.<br />
This Circular supersedes Circular No. 30 dated December 31, 2003.<br />
Distribution:<br />
1. Chief Executives <strong>of</strong> all listed companies<br />
2. Chief Executives <strong>of</strong> Stock Exchanges, Karachi/ Lahore/ Islamabad<br />
3. The President, Institute <strong>of</strong> Chartered Accountants <strong>of</strong> Pakistan<br />
4. The President, Institute <strong>of</strong> Cost and Management Accountants <strong>of</strong> Pakistan<br />
5. Press Information Department, Islamabad<br />
6. Associated Press <strong>of</strong> Pakistan<br />
7. All <strong>of</strong>ficers <strong>of</strong> <strong>the</strong> Commission<br />
(Ali Azeem)<br />
Director (Enforcement-III)<br />
7 th Floor, NIC Build<strong>in</strong>g, J<strong>in</strong>nah Avenue, Blue Area, Islamabad<br />
PABX: 9207091-4, Fax No. 9218592 & 9204915, Email: webmaster@secp.gov.pk Website: www.secp.gov.pk