Government concurrence not required: PSCs' CEs to be appointed by BoD: SECP

The appointment of chief executive in a public-sector company, as and when acquired by Sarmaya-e-Pakistan Limited (SPL), shall be made by its board, for which the concurrence of the government shall not be required.

The Securities and Exchange Commission of Pakistan (SECP) has issued SRO 124 (I)/2020 here on Tuesday to issue draft amendments in the Public Sector Companies (Corporate Governance) Rules, 2013.

It said the company is a public sector company with 100 percent shareholding of the government established to carry out the business as a holding company.

According to the amended Public Sector Companies (Corporate Governance) Rules, 2013, the appointment of the chief executive in a public sector company, as and when acquired by SPL, shall be made by its board in accordance with these rules for which the concurrence of the government shall not be required.

Provided that nothing herein contained shall apply to a public sector company where the chief executive is nominated by the government in terms of Section 186 (appointment of first chief executive) and 187 (appointment of subsequent chief executive) of the Companies Act, the SECP added.

The SPL was established last year by the cabinet to bring in professional expertise to improve the governance of the state-owned enterprises (SOEs) and making these organisations profitable.

Last year, the Finance Division had notified the Board of Directors (BoDs) of the SPL established for restructuring and privatisation of SOEs.