The Securities and Exchange Commission of Pakistan (SECP) has permitted listed companies to hold their board of directors' meetings through video-conferencing.
The listed companies are, however, advised to avail of this facility only in emergent situations and the requirements of the requisite quorum and other legal formalities relating to holding of such meetings must be observed strictly.
It would be the responsibility of the company's secretary to secure video recording of the proceedings of the meetings and keep it in his custody along with other relevant records.
A few listed companies, particularly, multinationals had approached the SECP to allow holding of board of directors meetings through video-conferencing as and when some members of their board were not available in the country.
The SECP, in view of the practical problems, feels that holding of board's meeting through video-conferencing would facilitate the companies, whose directors sometimes find it difficult to travel to Pakistan for participating in the meetings owing to their busy schedule.
The SECP has, therefore, decided to allow the listed companies to hold their board meetings and audit committee's meetings through video-conferencing.
This would also ease pressure on the directors of the companies who have to attend quarterly board meetings and audit committee's meetings as per the requirement of the Companies Ordinance, 1984 and the Code of Corporate Governance.
Furthermore, use of modern technologies would be cost effective and would ensure participation of almost all the directors in such meetings, which would help in achieving the objectives of good corporate governance.