Minority shareholder oppression

The Securities & Exchange Commission of Pakistan (SECP) has recently published a report on ‘enhancing transparency and efficiency’ of the shareholder meetings, seeking public comments on it. It recommends changes for conducting shareholder meetings, election of directors, issues related to proxies, voting processes, and monitoring mechanisms. According to the report, redressal of issues faced by minority shareholders and effective participation by the institutional investors may go a long way in improving the listed companies’ transparency, efficiency and governance through greater participation of minority shareholders in the management and policy decision-making. The report has been prepared by a 10-member committee led by Asif Ali Qureshi, the CEO of Optimus Capital Management. It is a comprehensive review of how shareholder meetings by listed companies are conducted.