The board of directors of the stock exchanges should have full knowledge of the corporate governance, ensuring that the listed companies must meet the laid down requirements. This issue came to light during a workshop on corporate governance organised by Islamabad Stock Exchange (ISE) here on Wednesday.
The Manager, International Finance Corporation (IFC), Pakistan Corporate Governance Project, Kaiser Naseem, elaborated the importance of corporate governance. "Good governance adds value to a company's operations, as it improves and streamlines business process, leading to better performance. It also improves company's reputation thus lowering its cost of borrowing."
He said that the role and responsibility of the board of directors would ensure good governance practices. The board structure should be proper with an adequate number of independent directors.
The board should also have the required skills to provide management the vision and guidance needed to successfully meet the objectives. A vigilant board plays a key role in monitoring and safeguarding the interests of the company and its shareholders.
Aftab Ahmed Chaudhry, Managing Director, ISE, said that it is necessary that the board of directors should have proper knowledge of this issue.
It is the responsibility of the stock exchanges to ensure that all listed companies meet the corporate governance requirements.