ISLAMABAD: Former Chief Justice of Pakistan Tassaduq Hussain Jillani Friday said only listed companies are required to comply with the corporate social responsibility (CSR) requirements and the Securities and Exchange Commission of Pakistan (SECP) needs to take a more stringent approach for the corporate sector.
Tassaduq Hussain Jillani delivered a keynote address at the Symposium on Corporate Supervision and Regulatory Actions held by the Securities and Exchange Commission of Pakistan (SECP).
The SECP is hosting the Symposium on Corporate Supervision and Regulatory Actions on June 23-24. The first day of the symposium saw notable members of the judiciary take the stage and address on key challenges and opportunities pertaining to the corporate sector of Pakistan.
Tassaduq Hussain Jillani also gave a presentation on corporate social responsibility (CSR) and its reforms in Pakistan. He pointed out some successful CSR programs in the country and also shed light on CSR Reforms undertaken by the SECP including CSR reporting guidelines, integration of CSR into Code of Corporate Governance as well as capacity building and awareness programs to educate companies on CSR.
He also pointed out the areas where Pakistan’s corporate sector is lacking in CSR. He said that only listed companies are required to comply with the CSR requirement, and that SECP has taken a soft approach so far which needs to be made more stringent.
SECP Chairman Akif Saeed, in his welcome address, said that we aim to build a strong and growing corporate sector that is attractive to both domestic and foreign investors, ensuring economic stability and prosperity for our nation.
He added that in this crucial mission, we are fortunate to be assisted by our esteemed partners at the World Bank, and we express our heartfelt gratitude for their invaluable support in creating a conducive corporate environment in Pakistan.
Justice Shahid Karim, Justice (R) Mr. Hamid Ali Shah, and Barrister Iftikharuddin Riaz highlighted the developments in Company Law, the need for upgrading the procedures under Company Law, and discussed new concepts. IHC Advocates Syed Bulent Sohail and Umer Ejaz Gilani presented a case study on the empirical analysis of Company Court judgements and also shared recommendations on the subject.
Chief Justice of Pakistan (R) Iftikhar Muhammad Chaudhry spoke on the role of judiciary in economic development, regional integration and Foreign Direct Investment (FDI). He said that a well-functioning judiciary has a pivotal role in governance, democracy, constitutionalism, and economic growth.
He added, “A judiciary that upholds the principles of justice, accountability, and equitable access can truly propel our nation towards economic development, regional integration and foreign investment”.
He said there should be a clear division of responsibilities, even amongst courts, so that the matters of companies and businesses are not delayed because the courts are busy elsewhere.
Justice Jawad Hassan gave a keynote address on “Evolution of Company Law Jurisprudence and role of Company Benches of the Hon’ble High Court”. He accentuated on Sections 4, 5 and 6 of the Companies Act, 2017.
He quoted examples from his own judgements and explained how the interpretation of law is only half of the story, the laws themselves are equally significant. He mentioned SECP’s laws and shed light on their significance.
Justice Yousuf Ali Sayeed spoke on “Reflective Loss and the Derivative Action”. He said that owning a company’s shares do not offer a right to shareholders over the assets of the company, and the cases need to be decided keeping this in mind. He elaborated how the shareholders, at times, try to claim damages that are not necessarily their’s but are, in fact, the company’s losses. However, if the claimant can satisfy that the reported loss counts as a derivate loss, then the court should also operate accordingly.
Copyright Business Recorder, 2023
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