The general body of the Islamabad Stock Exchange (Guarantee) Limited (ISE) has unanimously approved amendments in the Articles of ISE for incorporating a three-year term of office for directors on the Board of the ISE.
According to an announcement of the ISE here on Thursday, the term of office of directors of a company having share capital is three years under Section 180 of the Companies Ordinance 1984, whereas the companies having no share capital are allowed to elect their directors as per their articles as given in Section 178(6) of the Companies Ordinance 1984. While considering the improvements in regulatory regime of the capital market, the Commission had been of the view that the tenure of directors of all stock exchanges should be three years in line with the Companies Ordinance and best corporate practices so as to maintain consistency in the policies of the Boards. A general meeting of the ISE was held here on Thursday to consider the matter of amendments in Articles of the ISE so as to provide three years term instead of existing one year.
In terms of these amendments in Articles, the Directors of ISE shall hold office of directors for three years. As the said matter is pending at other bourses of the country, the ISE has taken a lead in making a major change in its regulatory framework with consensus.