Corporate governance presentation


Published on


  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Corporate governance presentation

  1. 1. Saira AkhtarSarah MashhoodArshian Siddique Owais NathaniZardar Waseem
  2. 2.  Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic system, providing a strong foundation for establishing a fair and just society for mankind.
  3. 3.  To be a premier Islamic bank, offering a one- stop shop for innovative value-added products and services to our customers within the bounds of Shariah, while optimizing the stakeholders’ value through an organizational culture based on learning, fairness, respect for individual enterprise and performance.
  4. 4.  To develop a committed service culture which ensures the consistent delivery of our products and services within the highest quality service parameters, promoting Islamic values and ensuring recognition and a quality banking experience to our customers.
  5. 5.  incorporated on January 27, 1997 It started operations as an investment bank inAugust In January, 2002 in an historic initiative Meezan Bank was granted the nations first full-fledged commercial banking license dedicated to Islamic Banking, by the State Bank of Pakistan.
  6. 6.  excellent operating profitability, including a capital adequacy ratio a long-term entity rating of A+, and a short- term entity rating of A1+, the highest short- term rating extraordinary research and development capability
  7. 7.  Pak-Kuwait Investment Company the Islamic Development Bank of Jeddah Shamil Bank of Bahrain
  8. 8.  H.E. Sheikh Ebrahim Bin Khalifa Al-Khalifa Chairman Naser Abdul Mohsen Al-Marri Vice Chairman Rana Ahmed Humayun Mohammed Azzaroog Rajab Ahmed Abdul Rahim Mohamed Nawal Ahmed Alaa A. Al-Sarawi Mian Muhammad Younis Mohammad Abdul Aleem Irfan Siddiqui President & CEO Ariful Islam
  9. 9.  First exclusive Islamic bank. The largest Islamic Bank in Pakistan with a network of over 204 branches in 54 cities. And ending this year they have increase his branches in Pakistan to 280 branches. Strong growth of its Islamic banking SBU. Meezan Bank, the largest Islamic Bank in Pakistan Dedicated and professional staff Shariah board of renowned scholars Healthy working environment Strong shareholding
  10. 10.  High charges for different activities such as online or Demand Draft as compared to competitors. Lack of promotions and advertising of their products and services. Lengthy & extensive documentation Centralized procedures making process slow Weak marketing strategy, Target market not identified offering fewer services than the competitors Risk Averse, approach of Head office. Meezan Bank Limited has no Credit card facility Restricted Shariah based policies
  11. 11.  House financing sector can be targeted to maximize the profit. Growing demand of Islamic financial product and services. Venturing into Islamic groups out side the countries as opportunity to expand business in UAE and Golf states i.e. financial institutions. Coming up with. Products for the SME to targeting the medium level customers. Doing business with companies having Islamic mindset. I-e Islamic financial Institutions. Increase branch network within the country
  12. 12.  New competitors setting up their Islamic banking sections High Interest Rate from SBP SBP has not special policy regarding Islamic Banking. Disassociation of Maulana Taqi Usmani from the Shariah advisory board of Meezan Bank Govt. policies are mostly for conventional banking system not for specially designed for Islamic banking. Fears on the credibility of Islamic banking ethical compliance and monitoring systems.
  13. 13. The responsibilities of the directors, members and the staff are clearly written in: Articles of Association Memorandum Potential Regulates Banking Companies Ordinance 1962 (State Bank of Pakistan)
  14. 14.  (?)
  15. 15.  Executive and Non-Executive Directors Chairman Vice Chairman President CFO COO CEO Sponsor Shareholders are appointed for the Annual General Meeting
  16. 16.  No Remuneration Committee Directors’ Pay according to SBP Disclosure in the Annual report. Pay to Senior Executives (C.E.O, C.F.O, and C.O.O).
  17. 17.  Pay to the non-Executive directors Disclosure in Articles of Association
  18. 18.  2/3rd quorum is maintained for board and board committees Circulating the minutes to other members Notice of Meeting
  19. 19.  Minimum Criteria No tenure Responsibilities of Company Secretary
  20. 20.  The information is kept to inform the public about the company operations. It is done through Karachi Stock Exchange (KSE) annually. Some information is kept hidden fom the public as per company policy.
  21. 21.  Board Meeting in every three months Agenda Paper NO SURPRISES Arrangement of Issues
  22. 22.  Formal Meeting in It is a legal requirement for voluntary organizations that have company status. It is good practice for charities to have an AGM to act as a review of the year .
  23. 23.  Although it is a formal meeting, it can also be a good opportunity to communicate with members, clients, partners and other interested parties. They also approve the minutes of the previous meeting. They also undertake a review to ensure that actions decided at meetings have been taken and the recommendations send by the risk management committee also been consider.
  24. 24.  Meezan has the policy on the conflict of interests as the transaction made by the directors or management in terms of shares reports to the SECP. If anyone in the company has the shares of more than 5 % so bank should inform to the state bank of Pakistan (SBP).
  25. 25.  Section 189(1) (c) of the Companies Act requires that after its registration a company must establish an interests register. This is a list of the material interests that the directors have in: Businesses with which the company is dealing Transactions involving the company. Businesses or transactions which may impact on the company in some way.
  26. 26.  The shareholding interest is the important to be disclosed because it differentiates the directors as independent directors. The organization also maintains the register of interests as every bank does and it is reviewed by the audit committee and chief financial officer (CFO). It is not necessary for all the members to sign the register.
  27. 27.  HR heads is responsible to review the system. The organization has a disciplinary committee to see the different mishaps. They also have a fraud and fraudulent committee.
  28. 28.  Proxy Guidelines Case of Vote in Absentia Resolutions Put before Shareholders Member’s Registrar Proxy / Vote to Attend Member of CDC
  29. 29.  IAS/IFRS & State Bank of Pakistan regulations Financial Statements are signed by Consolidated Financial Statements
  30. 30.  Warehouse at Site Area, Karachi HRMS System for Access/Retrieval Temenos (T24) for Adequate Security
  31. 31.  No Nominating Committee Recommendations by 3 main shareholders:Noor Financial Investment Co, KuwaitPakistan Kuwait Investment Co. (Pvt.) Ltd.Islamic Development Bank, Jeddah State Bank of Pakistan
  32. 32.  Elected or re-elected after every 3 years SBP Conducts a Test Training Program (PICG) In case of BAD review…
  33. 33.  Clear Cut Agenda : Education Health
  34. 34. Examples of CSR Qarz e Hasna for Higher Studies Rehabilitation of Flood-Affectees Afzaal Memorial Thalessemia Foundation & Others
  35. 35.  The Sharia Advisor and Shariah Supervisory Board of the Band are responsible to monitor the process. An independent trust by the name of Ihsan Trust has been registered as an independent entity for disbursement of Meezan Bank’s charity fund.
  36. 36.  During the year, Meezan Bank disbursed a total of Rs. 137.6 million from its charity fund, the highest in the history of the Bank. During the year, an amount of Rs. 106.309 million was transferred to the Charity account
  37. 37.  During the year, an amount of Rs. 106.309 million was transferred to the Charity account and an amount of Rs. 137.633 million was disbursed from charity saving account after the approval of the Shariah Advisor.
  38. 38.  In case they do not receive any deposits in the charity account then this could lead to a few problems. It should be noted that there has been no such case in the history of Meezan Bank to this day.
  39. 39.  A public official is one who acts as an impartial intermediary between the public and government or bureaucracy, or an employee of an organization who mediates disputes between employees and management. Their CCO is the ombudsperson of the company and he acts as the impartial intermediary in this case.
  40. 40.  The policies of the company on sexual harassment have been mentioned in a proper document and are shown to all at one point or another so that it is taken care of properly. Women who work come to work wearing an Abaya so they feel safe and secure.
  41. 41.  The company follows the code of equal employment opportunity and mentions it everywhere in order to show its equitability in case of pay scale.
  42. 42.  Since they have loads of work and the size of the bank has been on the go for expansion they have not really gotten time or tied up money to arrange for external lawyers. Instead they have a legal department that takes care of any lawsuits that come their way which are usually about non performing loans and then they also have Remedial Asset Management to work for this purpose.
  43. 43.  They do not appoint any external corporate governance advisors since they get all the information on regulations on corporate governance from State Bank of Pakistan. They monitor the bank and its every move vigilantly.
  44. 44.  None in Place