LAHORE - SNGPL Chairman Saeed Mehdi has stressed the importance of corporate governance by referring that it broadly leads to enforcement of best business practices and assured the supremacy of rules and regulation in business organisation.
He expressed these remarks in a conference on code of corporate governance which was organised by ICMAP Lahore. He said corporate governance involves full set of relationships between company board, its management, share holders and other stake holders. He said that corporate governance is characterised by participatory management, consensus decision making, accountability, transparency, efficiency and effectiveness. ICMA Pakistan President Iqbal Ghori also shared his views on the occasion. He dwelt at length on the regulatory role of the SECP and stated that corporate governance is essentially based on principles such as conducting the business with all integrity and fairness.
Khawaja Ehrarul Hassan, Ahmad Ashraf, Ali Imran and Altaf Hussain Khan also delivered speeches on the occasion. They stated that the Institute of Cost & Management Accountants of Pakistan is playing an active role in enforcement of corporate governance in business enterprises.
They said that bad governance can lead to corruption and low profitability whereas good governance leads to value creation and better performance in economic entities. They also emphasized that fundamentally a level of confidence is associated with a company known to have good corporate governance. The presence of an active group of independent directors on the board can jack up the performance and image of the company. Corporate governance is known to be one of the criteria that foreign investors depend upon while deciding in which company to invest, they said. In this way corporate governance plays a key role in the financial credibility and health of companies, they added.
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