Qudsia Bano

The need for tech-savvy governance is more pressing now than ever in a time when technology affects every part of our lives. It is imperative that corporate governance uses digital technologies to improve accountability, transparency and inclusivity. A recent report of Securities and Exchange Commission of Pakistan (SECP) highlights the important role of shareholder meetings as the formal structure involving minority shareholders in governance, strategic decisions, and accountability of boards in Pakistani companies. It emphasises that an organisation's dedication to better corporate governance standards is reflected in the quality of these meetings. By prioritising transparency, engagement, and adherence to legal and regulatory requirements, companies not only enhance the effectiveness of these meetings but also foster trust among stakeholders. “In Pakistan, corporate governance has been undergoing a significant transformation, driven by the increasing integration of technology and the recognition of its potential to improve transparency and accountability.

With the advent of e-governance portals and digital platforms, companies are now better equipped to facilitate shareholder engagement and participation in key decision-making processes,” said an SECP official. “These technological advancements not only streamline administrative tasks but also democratise access to information, enabling shareholders, especially minorities, to make informed decisions and hold boards accountable,” according to the official. “However, despite these advancements, challenges persist, particularly in the realm of state-owned enterprises (SOEs) where governance structures are often marred by bureaucratic hurdles and political interference,” he noted. “Delays in the election of directors remain a significant concern, reflecting broader issues of governance inefficiency and lack of regulatory enforcement. In many cases, these delays are orchestrated to maintain the status quo and prevent meaningful minority representation on boards, perpetuating a culture of opacity and insider control.” Embracing tech-savvy governance is not just a necessity; it's the need of the hour for Pakistan.

By harnessing the power of technology to enhance transparency, accountability, and inclusivity in corporate governance, Pakistan can foster a conducive environment for investment, innovation, and sustainable growth in the digital age. To address these challenges, policymakers and regulatory bodies must prioritise reforms that promote transparency, accountability, and inclusivity in corporate governance. This includes stringent enforcement mechanisms to penalise delays in director elections, as well as measures to enhance the role of scrutineers and expand shareholder access to information through digital platforms. Moreover, there is a pressing need to foster a culture of corporate responsibility and ethical conduct among companies, with a focus on empowering minority shareholders and ensuring their voices are heard in decision-making processes.

Credit: INP-WealthPk