The Code of Corporate Governance 2012 was introduced in multiple jurisdictions to improve transparency, accountability, and board effectiveness in listed companies. Two notable implementations are in Pakistan and Singapore, each tailored to local regulatory and corporate environments.
Pakistan: Code of Corporate Governance 2012
Issued by the Securities and Exchange Commission of Pakistan (SECP), this code updated the original 2002 framework to align with international standards. Key provisions included:
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Board Composition: At least one independent director; executive directors limited to one-third.
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Directorship Limit: No individual may serve on more than seven boards simultaneously.
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Chairman & CEO: Recommended separation of roles to balance power.
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Committee Requirements: Mandatory Human Resources & Remuneration committees; Audit Committee chaired by an independent director.
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Director Training: The Director’s Training Program (DTP) ensured directors were qualified for fiduciary duties.
This 2012 code was later replaced by the 2017 and 2019 SECP regulations.
Singapore: Code of Corporate Governance 2012
Issued jointly by the Monetary Authority of Singapore (MAS) and Singapore Exchange (SGX), the code emphasized:
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Board Independence: Independent directors to make up at least one-third of the board, or half if the Chairman is not independent.
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Risk Management: Boards are responsible for governance and determining the company’s risk tolerance.
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Remuneration Disclosure: Clear disclosure of executive pay linked to performance.
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Internal Audit: Audit Committees approve hiring/removal of the head of internal audit.
Conclusion
The 2012 corporate governance codes in Pakistan and Singapore strengthened board oversight, transparency, and accountability, serving as benchmarks for listed companies seeking investor confidence and regulatory compliance.
