A Summary of Revised draft code of Corporate Governance The SECP has reformed the code of corporate governance in the

light of practical issues &considerations relevant to listed companies to ensure that it reflects changing governance concerns. The SECP mandated PICG to review the code in the light of international best practices based on past experiences of existing code. An official said, the amendment has proposed to ensure that the board includes directors who can exercise independent judgment essential to protect the interest of stakeholders. The proposed code of CG aims at putting strict measures over composition of board emphasized on strengthening internal audit system for reducing malpractices financial misappropriation in the companies. If the director has had business relations with company or is a shareholder in the company then the director cant be involve in deciding his/her own remuneration, it rather is decided by committee of non-executive directors independent of management other relations. The SECP said that HRR committee plays a vital role in bringing transparency to ensure achievement of corporate goal. The draft identified strict information criteria for all board members that no director is considered independent if he/she has been an employee of the company within the last three years. A Summary of Draft Cost Accounting Order for Fertilizers The SECP has finalized the draft for fertilizer industry order 2011. An SECP official said that this movement will bring competitiveness and transparency in order to reveal the actual profit of enterprise to ensure the rights of minority shareholders. The audit of cost gives the total asset turnover analysis for shareholders to support their decisions. The General order by SECP demands to show cost accounting records from industries was taken back and the new order made easy the listing and recording for different sectors towards efficiency and performance as a tool for good governance and regulatory mechanism for fertilizer industry. The final draft comprises of cost for material(normal wastage included), labor cost to be maintained as well as production and sales cost of every item on annual basis. If the company produces other than fertilizer then those records should maintain separately.