ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has strictly directed companies’ shareholders to ensure that sensitive information of General Meetings should not be shared with any non-participant, unless it is already made public.
The directive has been issued under the new SECP’s Guidelines for Professional Conduct in General Meetings (the “Guide”) is primarily proposed for companies listed on the Pakistan Stock Exchange (PSX), but it may be applied generally by other organizations.
The SECP has further directed the shareholders that unless explicitly authorized, shareholders should refrain from recording the meeting (audio, video, or in written form) to maintain confidentiality.
The SECP has directed the companies to secure technology for virtual meetings should be used, ensuring that access is limited to authorized participants only.
The companies should also encourage professional behavior among participants, emphasizing the importance of confidentiality in all discussions, SECP maintained.
Companies Act, 2017 delineates three primary types of shareholder meetings- Statutory Meeting, Annual General Meeting (AGM), and an Extraordinary General Meeting (EOGM).
Additionally, law provides for meetings convened by the court and SECP and specifies that some business transactions as may be notified by the Commission, only transacted through postal ballots.
Every shareholder meeting, having its own timelines and requisites, can be segregated into three phases. The detailed guidelines outlined below provide direction for maintaining the decorum of these general meetings throughout all phases, the SECP added.
Copyright media, 2025
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