This document contains the basic Corporate Governance concepts implications in two big insurance firms in Pakistan. How the take advantage of Corporate Governance.
The document summarizes recommendations from various committees in India on corporate governance practices for listed companies. Some of the key recommendations include:
- Boards of listed companies should have a minimum of half independent directors if the Chairman is also the Managing Director.
- Directors should not hold more than 10 directorships in listed companies.
- Audit committees should comprise of non-executive members and review financial reporting and internal controls.
- Disclosure of related party transactions and management discussion on company performance in annual reports.
- Establishment of remuneration committees to set compensation of executive directors.
Companies and Corporate Governance – An OverviewAhmed Ibrahim
The document discusses corporate governance rules for companies in the UAE as outlined in a new decree. It summarizes the key aspects of the decree including requirements for board composition, definitions of independent and non-executive board members, separation of the chairman and CEO roles, formation of board committees, and remuneration of board members. The decree aims to provide oversight of company management and protect shareholder interests through establishing standards for board structure, duties, and transparency.
The SEBI Board meeting made several decisions regarding the regulation of market infrastructure institutions (MIIs) such as stock exchanges, clearing corporations, and depositories. Key decisions included setting minimum net worth requirements for MIIs, limiting ownership in MIIs to prevent concentrated control, establishing independent regulatory oversight within MIIs, mandating clearing through independent clearing corporations, and processes for exiting non-operational stock exchanges.
This document discusses corporate board committees and their roles and responsibilities. It begins by explaining that board committees focus on specific areas to make recommendations to the full board. There are mandatory committees like the audit committee, which monitors financial reporting, and non-mandatory committees that provide guidance on areas like remuneration, shareholder grievances, nominations, compliance, investments, and risk management. The document concludes that committees help structure the board's work by handling specific tasks and advising the full board, though the board must ultimately approve all committee recommendations.
This document outlines the key aspects of corporate governance as per Clause 49 of the Indian listing agreement. It discusses the meaning and role of corporate governance, as well as the requirements for board of directors, audit committees, disclosure, and other matters. The key points are:
1. Corporate governance aims to ensure transparency, accountability, and integrity in a company's dealings. It calls for decision-making and establishing responsibilities.
2. Clause 49 sets the standards for corporate governance that listed companies must comply with. It covers topics like board composition, roles of independent directors, audit committee qualifications, and other disclosures.
3. Requirements include having a majority of non-executive directors on the board, minimum board
The document outlines Schering-Plough Corporation's corporate governance guidelines, which were approved by the board of directors in July 2007. The guidelines cover topics such as board composition, director qualifications and responsibilities, committee structure and responsibilities, and compliance and ethics oversight. The purpose of the guidelines is to ensure good corporate governance in order to achieve Schering-Plough's mission of earning trust every day through innovative medical research that benefits patients and shareholders.
The document discusses the composition, roles, and requirements around Nomination and Remuneration Committees and Shareholders' Grievance Committees according to the Companies Act and Clause 49 of the Listing Agreement. For Nomination and Remuneration Committees, the key points are that the chairman must be an independent director, and there are contradictions between the Act and Clause 49 regarding applicability thresholds. For Shareholders' Grievance Committees, the purpose is to address shareholder complaints, the committee must have a non-executive independent director as chairman, and Clause 49 makes these committees mandatory for listed companies.
The document outlines the corporate governance guidelines of L-3 Communications Holdings, Inc. It discusses the board's responsibilities in overseeing the company's strategic direction and management. It also describes the board's role in selecting directors, maintaining independence, and establishing committees. The guidelines provide criteria for determining director independence and avoiding conflicts of interest.
The document summarizes recommendations from various committees in India on corporate governance practices for listed companies. Some of the key recommendations include:
- Boards of listed companies should have a minimum of half independent directors if the Chairman is also the Managing Director.
- Directors should not hold more than 10 directorships in listed companies.
- Audit committees should comprise of non-executive members and review financial reporting and internal controls.
- Disclosure of related party transactions and management discussion on company performance in annual reports.
- Establishment of remuneration committees to set compensation of executive directors.
Companies and Corporate Governance – An OverviewAhmed Ibrahim
The document discusses corporate governance rules for companies in the UAE as outlined in a new decree. It summarizes the key aspects of the decree including requirements for board composition, definitions of independent and non-executive board members, separation of the chairman and CEO roles, formation of board committees, and remuneration of board members. The decree aims to provide oversight of company management and protect shareholder interests through establishing standards for board structure, duties, and transparency.
The SEBI Board meeting made several decisions regarding the regulation of market infrastructure institutions (MIIs) such as stock exchanges, clearing corporations, and depositories. Key decisions included setting minimum net worth requirements for MIIs, limiting ownership in MIIs to prevent concentrated control, establishing independent regulatory oversight within MIIs, mandating clearing through independent clearing corporations, and processes for exiting non-operational stock exchanges.
This document discusses corporate board committees and their roles and responsibilities. It begins by explaining that board committees focus on specific areas to make recommendations to the full board. There are mandatory committees like the audit committee, which monitors financial reporting, and non-mandatory committees that provide guidance on areas like remuneration, shareholder grievances, nominations, compliance, investments, and risk management. The document concludes that committees help structure the board's work by handling specific tasks and advising the full board, though the board must ultimately approve all committee recommendations.
This document outlines the key aspects of corporate governance as per Clause 49 of the Indian listing agreement. It discusses the meaning and role of corporate governance, as well as the requirements for board of directors, audit committees, disclosure, and other matters. The key points are:
1. Corporate governance aims to ensure transparency, accountability, and integrity in a company's dealings. It calls for decision-making and establishing responsibilities.
2. Clause 49 sets the standards for corporate governance that listed companies must comply with. It covers topics like board composition, roles of independent directors, audit committee qualifications, and other disclosures.
3. Requirements include having a majority of non-executive directors on the board, minimum board
The document outlines Schering-Plough Corporation's corporate governance guidelines, which were approved by the board of directors in July 2007. The guidelines cover topics such as board composition, director qualifications and responsibilities, committee structure and responsibilities, and compliance and ethics oversight. The purpose of the guidelines is to ensure good corporate governance in order to achieve Schering-Plough's mission of earning trust every day through innovative medical research that benefits patients and shareholders.
The document discusses the composition, roles, and requirements around Nomination and Remuneration Committees and Shareholders' Grievance Committees according to the Companies Act and Clause 49 of the Listing Agreement. For Nomination and Remuneration Committees, the key points are that the chairman must be an independent director, and there are contradictions between the Act and Clause 49 regarding applicability thresholds. For Shareholders' Grievance Committees, the purpose is to address shareholder complaints, the committee must have a non-executive independent director as chairman, and Clause 49 makes these committees mandatory for listed companies.
The document outlines the corporate governance guidelines of L-3 Communications Holdings, Inc. It discusses the board's responsibilities in overseeing the company's strategic direction and management. It also describes the board's role in selecting directors, maintaining independence, and establishing committees. The guidelines provide criteria for determining director independence and avoiding conflicts of interest.
Reliance Industries Limited (RIL) is an Indian conglomerate company headquartered in Mumbai. It is one of the largest publicly traded companies in India by market capitalization and revenue. RIL received high ratings from ICRA and GMI for its board accountability, financial disclosure and controls, shareholder rights, and executive compensation. However, its corporate behavior and CSR received lower ratings due to a lack of clarity and separate reporting around its CSR activities and spending. Overall, RIL was given ratings between 7.5-8.5 by GMI, indicating above average performance in corporate governance.
This document discusses the roles and responsibilities of audit committees in corporate governance. It begins with definitions of audit committees and their objectives, which include overseeing financial reporting, monitoring accounting policies, and overseeing internal and external auditors. It then reviews the history of audit committees and their evolution over time through various committee reports. Finally, it outlines the key roles and responsibilities of audit committees, which include overseeing financial reporting, selecting and monitoring external auditors, overseeing regulatory compliance, and monitoring internal controls and risk management. The audit committee plays an important role in ensuring transparency and accountability.
Corporate Governance Code dated June 03, 2018
In exercise of the power conferred by section 2CC of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Commission hereby repeals its earlier Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012, published in the official gazette on 30 August 2012 and the relevant Notification(s) on the same matter and, imposes the following further conditions, Corporate Governance Code
Narayan murthy report on corporate governanceDhruvKothari13
The document summarizes the key recommendations from the Narayana Murthy Committee Report on Corporate Governance in India from 2003. The committee was formed by SEBI under Murthy's chairmanship to review corporate governance standards and disclosure requirements. The committee recommended several mandatory requirements, such as strengthening audit committees, requiring approval of related party transactions, and establishing whistleblower policies. It also recommended non-mandatory best practices around moving to unqualified financial statements, training board members, and evaluating board performance. The recommendations aimed to improve transparency, accountability and investor protection in Indian markets.
The Audit Committee Charter establishes the purpose, membership, structure, and responsibilities of the Audit Committee of Ingram Micro Inc. The purpose is to oversee the integrity of financial reporting, compliance with legal and regulatory requirements, and the independence and performance of the independent auditors and internal audit department. The Committee must have at least three independent directors with financial literacy. It will meet at least four times per year and report annually to the full Board. Key responsibilities include reviewing financial statements and disclosures, risk management, auditor appointment and compensation, and overseeing the internal audit department.
Abstract:
Corporate governance is very important in our business world today, especially after the frequent non-stop worldwide financial crises. Strong corporate governance is now considered a basic condition to accept and register an organization in most of the Stock Exchange Markets all over the world. The audit committee plays a major role in corporate governance regarding the organization’s direction, control, and accountability. As a representative of the board of directors and main part of the corporate governance mechanism, the audit committee is involved in the organization’s both internal and external audits, internal control, accounting and financial reporting, regulatory compliance, and risk management. This paper focuses on the audit committee’s powers, functions, responsibilities, and relationships within the framework of corporate governance.
This document provides an overview of corporate governance practices at three major Japanese companies - Honda, Toyota, and Mitsubishi Corporation. It discusses how each company has different boards and committees to oversee management, ensure transparency, comply with laws, and protect shareholder interests. Key elements include boards of directors, boards of corporate auditors with outside members, disclosure committees, compliance officers, and other groups focused on risk management, business ethics, and more. The companies aim to increase long-term corporate value through robust governance.
The document discusses the roles and responsibilities of boards of directors. It provides definitions of boards and describes their key functions, including oversight of management, setting strategic direction, and advising management. It also discusses types of boards, such as unitary vs. two-tier boards, and common vs. staggered boards. Additionally, it covers characteristics of effective vs. ineffective boards and factors that contribute to balanced boards.
The document discusses audit committees and audit reports. It states that all listed companies and public companies meeting certain criteria regarding paid up capital, turnover, or outstanding loans must constitute an audit committee. The audit committee must have at least 3 directors, the majority of which must be independent directors. It must meet at least 4 times per year with gaps between meetings not exceeding 4 months. An audit report is a written opinion from an auditor on an entity's financial statements. Audit reports can include emphasis of matter paragraphs to draw attention to important matters.
Corporate governance and financial reporting disclosuresAlexander Decker
This article examines the influence of corporate governance on corporate financial reporting disclosures in Bangladesh. The researchers measured the overall disclosure index of 20 non-financial companies and found that corporate governance is significantly associated with the extent of financial reporting disclosures. In particular, external auditors, multi-listing status, and profitability were significantly associated with higher overall financial reporting disclosures. The article argues that improving corporate governance practices, such as strengthening board oversight and external controls, can help enhance the reliability of financial reporting and restore investor confidence in Bangladesh's volatile capital markets.
The Sarbanes-Oxley Act of 2002 was passed in response to major corporate and accounting scandals to increase corporate accountability and protect investors. It established new or enhanced standards for all U.S. public company boards, management, and public accounting firms. Key provisions included requiring CEOs and CFOs to certify the accuracy of financials, increasing penalties for financial misconduct, and strengthening auditor independence and corporate governance. The Act aimed to rebuild investor confidence in the securities markets.
The document is a letter from Parag Basu, Deputy General Manager of SEBI, to the Managing Directors of all stock exchanges in India. It directs the stock exchanges to amend their listing agreements to replace the existing Clause 49 with a revised Clause 49 on corporate governance. It provides details on the implementation schedule and ongoing compliance requirements for listed companies. It also specifies the role of stock exchanges in monitoring compliance and reporting to SEBI.
The board of directors plays a central role in the corporate governance system. All countries require that publicly listed companies have a board. While their attributes vary across nations, they universally share common responsibilities.
This Quick Guide provides an introduction to the roles and responsibilities of the board of directors.
It answers the questions:
• What is the purpose of a board?
• How does a board function?
• What does it mean to be “independent”?
• What are the legal and fiduciary requirements?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
This document discusses financial disclosure practices in Pakistan. It provides an introduction to good corporate governance principles of transparency, accountability, fairness and responsibility. It then gives a brief history of corporate governance development in Pakistan, including key acts, regulations and codes issued. The document outlines requirements for financial disclosure in annual reports and reasons for financial disclosure. It discusses advantages such as regulatory compliance, reputation and investor interest, and disadvantages of non-disclosure. It also describes instances of financial fraud in Pakistan such as the PTCL and Crescent Investment Bank scandals.
The document outlines the roles and responsibilities of an audit committee according to various regulatory frameworks. The audit committee is responsible for ensuring proper corporate governance, financial reporting, internal controls, and transparency. It monitors the accounting and auditing processes, evaluates the independence and performance of external auditors, and oversees financial risk management and compliance. The committee also reviews related party transactions, whistleblower reports, and the work of internal and external auditors. It is tasked with preparing reports for the board of directors and making recommendations regarding auditors and internal controls.
- SEBI revised Clause 49 of the Listing Agreement in 2004 based on recommendations from the Murthy Committee on corporate governance norms.
- Key changes included stricter requirements for director independence, whistleblower policies, performance evaluations, and training for non-executive directors.
- Areas that saw major changes include board composition, compensation disclosure for non-executive directors, audit committee composition and responsibilities, and new disclosure requirements.
The Code of Corporate Governance establishes rules for listed companies in Pakistan regarding their board of directors, financial reporting, auditing, and corporate ownership structure. It requires boards to include independent directors, sets qualifications for directors and financial officers, and mandates quarterly financial reporting, audit committees, and limits on auditor share ownership. The code aims to improve transparency, accountability, and protections for investors in Pakistani public companies.
Board committees are small groups formed by the board to support specific work. The Companies Act 2013 mandates four committees: Audit, Nomination and Remuneration, Corporate Social Responsibility, and Stakeholders Relationship. The Audit Committee oversees financial reporting and auditing. The Nomination and Remuneration Committee handles director nominations and compensation. The CSR Committee recommends CSR spending and monitoring. The Stakeholders Relationship Committee addresses shareholder grievances. Committees must have the proper composition and meet requirements to avoid penalties.
Need for constitution of committees - Dr S. ChandrasekaranD Murali ☆
Need for constitution of committees - Dr S. Chandrasekaran - - Article published in Business Advisor, dated July 10, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
LIC Housing Finance Limited is one of India's largest housing finance companies. Its board of directors consists of both executive and non-executive directors, including independent directors. The board has established several committees to oversee key functions like auditing, nomination/remuneration, corporate social responsibility, and risk management. The company has adopted policies on whistleblowing, CSR, and corporate culture that emphasize accountability, commitment, trust, and ethical conduct among employees.
Reliance Industries Limited (RIL) is an Indian conglomerate company headquartered in Mumbai. It is one of the largest publicly traded companies in India by market capitalization and revenue. RIL received high ratings from ICRA and GMI for its board accountability, financial disclosure and controls, shareholder rights, and executive compensation. However, its corporate behavior and CSR received lower ratings due to a lack of clarity and separate reporting around its CSR activities and spending. Overall, RIL was given ratings between 7.5-8.5 by GMI, indicating above average performance in corporate governance.
This document discusses the roles and responsibilities of audit committees in corporate governance. It begins with definitions of audit committees and their objectives, which include overseeing financial reporting, monitoring accounting policies, and overseeing internal and external auditors. It then reviews the history of audit committees and their evolution over time through various committee reports. Finally, it outlines the key roles and responsibilities of audit committees, which include overseeing financial reporting, selecting and monitoring external auditors, overseeing regulatory compliance, and monitoring internal controls and risk management. The audit committee plays an important role in ensuring transparency and accountability.
Corporate Governance Code dated June 03, 2018
In exercise of the power conferred by section 2CC of the Securities and Exchange Ordinance, 1969 (XVII of 1969), the Commission hereby repeals its earlier Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012, published in the official gazette on 30 August 2012 and the relevant Notification(s) on the same matter and, imposes the following further conditions, Corporate Governance Code
Narayan murthy report on corporate governanceDhruvKothari13
The document summarizes the key recommendations from the Narayana Murthy Committee Report on Corporate Governance in India from 2003. The committee was formed by SEBI under Murthy's chairmanship to review corporate governance standards and disclosure requirements. The committee recommended several mandatory requirements, such as strengthening audit committees, requiring approval of related party transactions, and establishing whistleblower policies. It also recommended non-mandatory best practices around moving to unqualified financial statements, training board members, and evaluating board performance. The recommendations aimed to improve transparency, accountability and investor protection in Indian markets.
The Audit Committee Charter establishes the purpose, membership, structure, and responsibilities of the Audit Committee of Ingram Micro Inc. The purpose is to oversee the integrity of financial reporting, compliance with legal and regulatory requirements, and the independence and performance of the independent auditors and internal audit department. The Committee must have at least three independent directors with financial literacy. It will meet at least four times per year and report annually to the full Board. Key responsibilities include reviewing financial statements and disclosures, risk management, auditor appointment and compensation, and overseeing the internal audit department.
Abstract:
Corporate governance is very important in our business world today, especially after the frequent non-stop worldwide financial crises. Strong corporate governance is now considered a basic condition to accept and register an organization in most of the Stock Exchange Markets all over the world. The audit committee plays a major role in corporate governance regarding the organization’s direction, control, and accountability. As a representative of the board of directors and main part of the corporate governance mechanism, the audit committee is involved in the organization’s both internal and external audits, internal control, accounting and financial reporting, regulatory compliance, and risk management. This paper focuses on the audit committee’s powers, functions, responsibilities, and relationships within the framework of corporate governance.
This document provides an overview of corporate governance practices at three major Japanese companies - Honda, Toyota, and Mitsubishi Corporation. It discusses how each company has different boards and committees to oversee management, ensure transparency, comply with laws, and protect shareholder interests. Key elements include boards of directors, boards of corporate auditors with outside members, disclosure committees, compliance officers, and other groups focused on risk management, business ethics, and more. The companies aim to increase long-term corporate value through robust governance.
The document discusses the roles and responsibilities of boards of directors. It provides definitions of boards and describes their key functions, including oversight of management, setting strategic direction, and advising management. It also discusses types of boards, such as unitary vs. two-tier boards, and common vs. staggered boards. Additionally, it covers characteristics of effective vs. ineffective boards and factors that contribute to balanced boards.
The document discusses audit committees and audit reports. It states that all listed companies and public companies meeting certain criteria regarding paid up capital, turnover, or outstanding loans must constitute an audit committee. The audit committee must have at least 3 directors, the majority of which must be independent directors. It must meet at least 4 times per year with gaps between meetings not exceeding 4 months. An audit report is a written opinion from an auditor on an entity's financial statements. Audit reports can include emphasis of matter paragraphs to draw attention to important matters.
Corporate governance and financial reporting disclosuresAlexander Decker
This article examines the influence of corporate governance on corporate financial reporting disclosures in Bangladesh. The researchers measured the overall disclosure index of 20 non-financial companies and found that corporate governance is significantly associated with the extent of financial reporting disclosures. In particular, external auditors, multi-listing status, and profitability were significantly associated with higher overall financial reporting disclosures. The article argues that improving corporate governance practices, such as strengthening board oversight and external controls, can help enhance the reliability of financial reporting and restore investor confidence in Bangladesh's volatile capital markets.
The Sarbanes-Oxley Act of 2002 was passed in response to major corporate and accounting scandals to increase corporate accountability and protect investors. It established new or enhanced standards for all U.S. public company boards, management, and public accounting firms. Key provisions included requiring CEOs and CFOs to certify the accuracy of financials, increasing penalties for financial misconduct, and strengthening auditor independence and corporate governance. The Act aimed to rebuild investor confidence in the securities markets.
The document is a letter from Parag Basu, Deputy General Manager of SEBI, to the Managing Directors of all stock exchanges in India. It directs the stock exchanges to amend their listing agreements to replace the existing Clause 49 with a revised Clause 49 on corporate governance. It provides details on the implementation schedule and ongoing compliance requirements for listed companies. It also specifies the role of stock exchanges in monitoring compliance and reporting to SEBI.
The board of directors plays a central role in the corporate governance system. All countries require that publicly listed companies have a board. While their attributes vary across nations, they universally share common responsibilities.
This Quick Guide provides an introduction to the roles and responsibilities of the board of directors.
It answers the questions:
• What is the purpose of a board?
• How does a board function?
• What does it mean to be “independent”?
• What are the legal and fiduciary requirements?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
This document discusses financial disclosure practices in Pakistan. It provides an introduction to good corporate governance principles of transparency, accountability, fairness and responsibility. It then gives a brief history of corporate governance development in Pakistan, including key acts, regulations and codes issued. The document outlines requirements for financial disclosure in annual reports and reasons for financial disclosure. It discusses advantages such as regulatory compliance, reputation and investor interest, and disadvantages of non-disclosure. It also describes instances of financial fraud in Pakistan such as the PTCL and Crescent Investment Bank scandals.
The document outlines the roles and responsibilities of an audit committee according to various regulatory frameworks. The audit committee is responsible for ensuring proper corporate governance, financial reporting, internal controls, and transparency. It monitors the accounting and auditing processes, evaluates the independence and performance of external auditors, and oversees financial risk management and compliance. The committee also reviews related party transactions, whistleblower reports, and the work of internal and external auditors. It is tasked with preparing reports for the board of directors and making recommendations regarding auditors and internal controls.
- SEBI revised Clause 49 of the Listing Agreement in 2004 based on recommendations from the Murthy Committee on corporate governance norms.
- Key changes included stricter requirements for director independence, whistleblower policies, performance evaluations, and training for non-executive directors.
- Areas that saw major changes include board composition, compensation disclosure for non-executive directors, audit committee composition and responsibilities, and new disclosure requirements.
The Code of Corporate Governance establishes rules for listed companies in Pakistan regarding their board of directors, financial reporting, auditing, and corporate ownership structure. It requires boards to include independent directors, sets qualifications for directors and financial officers, and mandates quarterly financial reporting, audit committees, and limits on auditor share ownership. The code aims to improve transparency, accountability, and protections for investors in Pakistani public companies.
Board committees are small groups formed by the board to support specific work. The Companies Act 2013 mandates four committees: Audit, Nomination and Remuneration, Corporate Social Responsibility, and Stakeholders Relationship. The Audit Committee oversees financial reporting and auditing. The Nomination and Remuneration Committee handles director nominations and compensation. The CSR Committee recommends CSR spending and monitoring. The Stakeholders Relationship Committee addresses shareholder grievances. Committees must have the proper composition and meet requirements to avoid penalties.
Need for constitution of committees - Dr S. ChandrasekaranD Murali ☆
Need for constitution of committees - Dr S. Chandrasekaran - - Article published in Business Advisor, dated July 10, 2014 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
LIC Housing Finance Limited is one of India's largest housing finance companies. Its board of directors consists of both executive and non-executive directors, including independent directors. The board has established several committees to oversee key functions like auditing, nomination/remuneration, corporate social responsibility, and risk management. The company has adopted policies on whistleblowing, CSR, and corporate culture that emphasize accountability, commitment, trust, and ethical conduct among employees.
This document provides a corporate governance report for Hindustan Unilever. It discusses the company's commitment to transparency, accountability, and ethical business practices. The report outlines the roles and responsibilities of the Board of Directors in overseeing management and shareholders' interests. It also describes the composition of the Board and its committees. The report emphasizes Hindustan Unilever's focus on integrity, sustainability, and creating long-term value for stakeholders.
This document provides an overview of corporate governance training for directors. It defines corporate governance and outlines key principles such as the roles and responsibilities of a company's board of directors, management, and shareholders. The document also discusses important aspects of corporate governance like board structure and functioning, transparency and disclosure, and treatment of minority shareholders. Overall, the summary emphasizes that corporate governance involves the relationships and processes that direct and manage companies in the interests of stakeholders.
This document provides an overview of corporate governance. It defines corporate governance as applying best management practices and complying with laws and ethical standards to effectively manage a company and create wealth for stakeholders. Good corporate governance provides benefits like better access to financing, lower costs of capital, improved performance, and reduced risk. The four pillars of corporate governance are accountability, fairness, transparency, and independence. In India, organizations like CII and SEBI have worked to establish corporate governance standards and regulations like Clause 49 to strengthen practices at publicly listed companies.
This document discusses corporate governance in India. It provides definitions and principles of corporate governance, including its focus on sustainable development of stakeholders, best management practices, and adherence to laws and ethics. The four pillars of corporate governance are identified as accountability, fairness, transparency, and independence. The Securities and Exchange Board of India introduced Clause 49 to strengthen corporate boards through greater independent director representation and requirements around audit committees, codes of conduct, and whistleblower policies. Corporate governance in India has evolved significantly since economic liberalization in the 1990s to meet global standards as Indian companies increasingly compete internationally.
A word doc. on sri kumar mangalam birla committekeshav pareek
The Birla Committee was formed in 1999 by SEBI to develop a code of corporate governance for listed Indian companies. The 17-member committee, chaired by Kumar Mangalam Birla, made recommendations to distinguish the roles of the board and management and emphasize shareholder rights. Its report provided the first formal attempt to evolve a corporate governance code in the Indian context. It recommended both mandatory guidelines, like board composition and audit committee requirements, and non-mandatory best practices to improve transparency and accountability.
Narayana Murthy Committee Report on Corporate GovernanceMayur Khatri
The Narayana Murthy Committee on Corporate Governance was constituted by SEBI under the chairmanship of Narayana Murthy of Infosys Technologies Limited. The committee met three times in late 2002 and early 2003 to discuss issues related to corporate governance and finalize recommendations for SEBI. The key recommendations included mandatory requirements for audit committees, related party transactions, risk management procedures, codes of conduct, and whistleblower policies. Non-mandatory recommendations included training for board members and guidelines for analyst reports. The report aimed to improve transparency, accountability, and investor protection in Indian companies.
Corporate governance is the system of rules and practices by which companies are directed and controlled. The document discusses the principles, pillars, and elements of corporate governance, including accountability, fairness, transparency, and independence. It also provides details on the evolution of corporate governance in India, the role of organizations like SEBI and CII, and key regulations like Clause 49 that strengthened corporate governance practices for public companies.
- Sanghar Sugar Mills Limited is a listed company trading on the Karachi and Lahore Stock Exchanges. It communicates regularly with shareholders and other users through annual, half-yearly, and quarterly reports.
- The company saw an increase in profit after taxation to Rs. 8.7 million in 2014 compared to Rs. 6.9 million in 2013. Total assets also increased substantially to Rs. 1.8 billion in 2014 from Rs. 1.2 billion in 2013.
- Key financial ratios such as gross profit ratio, net profit to sales, return on capital employed, and earnings per share all improved from 2013 to 2014, indicating stronger financial performance.
Corporate governance guidelines and disclosures in India have evolved over time due to unethical business practices, globalization, and privatization. The key events include the Confederation of Indian Industry releasing a voluntary code in 1998, the Securities and Exchange Board of India mandating the Birla Committee's code for listed companies in 2000, and modifications to the Companies Act and accounting standards to improve transparency. Current guidelines mandate standards for board composition and meetings, information supplied to boards, audit committee composition and functions, and extensive financial and ownership disclosures to shareholders. Adherence to ethical values across all stakeholders is seen as important for effective governance.
Corporate governance guidelines and disclosures in India have evolved over time due to unethical business practices, globalization, and privatization. The key events include the Confederation of Indian Industry releasing a voluntary code in 1998, the Securities and Exchange Board of India mandating the Birla Committee's code for listed companies in 2000, and modifications to the Companies Act and accounting standards to improve transparency. Current guidelines mandate standards for board composition and meetings, information supplied to boards, audit committee composition and functions, and extensive financial and ownership disclosures to shareholders. Adherence to ethical values across all stakeholders is seen as important for effective governance.
Interal audit project presentation on TOYOTA INDUS MOTOR in Corporate GovernanceAmna Abrar
Corporate governance involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community. It refers to the system of rules, practices, and processes by which a company is directed and controlled. This document outlines the corporate governance structure of a company, including its board of directors and various committees, vision and values, approach to applying governance principles, and audit committee responsibilities related to financial reporting and controls.
Presentation on TOYOTA INDUS MOTOR in Corporate GovernanceAmna Abrar
This presentation is about the company of Toyota Indus Motor in Corporate Governance where tell about the company information their vision mission and the policy that apply on their company.How to react with employees, customers,shareholders etc
Corporate Governance: Introduction and Meaningrepallegiddaiah
Meaning
Role of Auditors
Role of Board of Directors
Role of Shareholders
Transparency and Disclosure
Corporate Governace Code
Corporate Issues and Need
The document discusses the history and development of corporate governance guidelines in India. It began with voluntary codes developed by industry groups like CII in the late 1990s. Regulators like SEBI then began introducing mandatory guidelines for listed companies regarding board structure, financial disclosures, related party transactions, and other areas. The guidelines aimed to increase transparency and accountability of companies following several corporate scandals. The document also discusses models of corporate governance and provides an example of a well-governed Indian company, Infosys.
This document discusses corporate governance, which refers to the rules and processes by which companies are directed and controlled. It balances the interests of shareholders, management, and other stakeholders. Corporate governance provides the framework for achieving company objectives and encompasses areas like strategy, risk management, and transparency. The key principles of good corporate governance are accountability, fairness, transparency, responsibility and risk management. The document also outlines different models of corporate governance used around the world and the legal framework and regulations regarding corporate governance for companies in India. Emerging trends discussed include increased shareholder influence, universal proxy cards, emphasis on enterprise risk management and climate change accountability.
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This is a complete project for Principal of Human Resource management Students. it address the all basic concepts of Human Resource management and how Adamjee Insurance implementing these concepts in day to day Operations.
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This is a complete project for Principal of management Students. it address the all basic concepts of management and how Adamjee Insurance implementing these concepts in day to day Operations.
Firms management in Pakistan a case of Adamjee insurance company LimitedFiaz Ahmad
This is a complete project for Principal of management Students. it address the all basic concepts of management and how Adamjee Insurance implementing these concepts in day to day Operations.
Capital and Revenue Expenditure (income tax law)Fiaz Ahmad
The document discusses the differences between capital and revenue expenditures and receipts. Revenue expenditures do not create permanent assets, while capital expenditures do. Purchasing fixed assets like land or buildings constitutes a capital expenditure, while repairing machinery is a revenue expenditure. Receiving money from the sale of a fixed asset used for business is a capital receipt, while money from selling stock is a revenue receipt. Money received for completely surrendering a right like a copyright is a capital receipt, while money received for temporary use of a right is a revenue receipt.
Business taxation introducation and historyFiaz Ahmad
The document discusses taxation in Pakistan. It provides historical background on taxation practices in ancient Egypt, Greece, and the Roman Empire. It then outlines Pakistan's current tax system, including the main taxes like income tax and sales tax. It notes that income tax is governed by the Income Tax Ordinance of 2001 and applies progressive personal and corporate income tax rates. The document also provides some statistics on Pakistan's tax system, like only 1.9 million people filing tax returns in 2014 out of a population of 190 million.
Basic concept and definition related to income taxFiaz Ahmad
The document defines key terms related to income tax law in Pakistan. It discusses concepts like taxable income, total income, and residence as it relates to tax law. It also outlines several important sections of tax law, defining terms such as accumulated profit, appellate tribunal, approved gratuity fund, pension scheme, and more. The document provides definitions for these tax-related terms to clarify their meanings in the context of Pakistan's income tax code.
Chapter 18:International Managerial FinanceFiaz Ahmad
The document provides an overview of key topics in international managerial finance covered in Chapter 18, including taxes, accounting practices, risk, international capital markets, and how operating in different countries can affect capital structure. It discusses templates and study guides available for the chapter. The answers to review questions cover topics like international trade agreements, joint ventures, foreign tax considerations, the Euromarkets, translating foreign subsidiary financial statements, foreign exchange rates, political risk, repatriating cash flows, and international business combinations. Case studies and problems provide examples of assessing foreign direct investments and calculating costs of capital and net present values for projects in other countries.
Chapter 10: Risk and Refinements In Capital BudgetingFiaz Ahmad
This document provides an overview and summary of Chapter 10 from the textbook "Principles of Managerial Finance" by Lawrence J. Gitman. Chapter 10 expands on capital budgeting techniques by considering risk factors such as sensitivity analysis, scenario analysis, and simulation. It also examines evaluating international projects and risk adjustment methods like certainty equivalents and risk-adjusted discount rates. The document provides learning resources for students on these topics, including a problem solver, study guide examples, and answers to review questions from the chapter.
This document provides an overview and study guide for Chapter 9 of the textbook "Principles of Managerial Finance" which covers capital budgeting techniques. It discusses net present value (NPV), internal rate of return (IRR), payback period, and risk-adjusted discount rates. It provides examples and solutions to problems involving calculating NPV, IRR, and payback period for capital budgeting projects. Answers to review questions on these techniques are also included to help students learn the concepts.
This chapter discusses risk and return, including measuring risk for single and multiple assets, the effects of diversification, and international diversification. It then introduces the Capital Asset Pricing Model (CAPM) as a tool for valuing securities based on their non-diversifiable risk compared to the market. The chapter materials include study guides, practice problems, and answers to review questions about key concepts such as beta, diversification, systematic and unsystematic risk, and how the CAPM links risk and required return.
The document discusses sources of income and business practices that are permissible and prohibited in Islam. It provides verses from the Quran indicating that any source of income is allowed if it benefits all parties justly, but bribery, theft, fraud, gambling, alcohol, and interest are forbidden. The document outlines moral directives for Muslims in business including honest measurements and weights, not hoarding wealth, and documenting debts. It emphasizes the importance of charity through paying zakat and prioritizing the needs of dependents. Entrepreneurship is encouraged over dependency, and social responsibility to the community is important through charitable acts that benefit people, animals and the environment. Contentment with wealth rather than vast riches is emphasized.
This document provides an introduction to cost accounting. It defines cost as a monetary measurement of resources used for production and defines cost accounting as the process of classifying and analyzing expenditures to determine the total cost of a unit of production. The objectives of cost accounting are to ascertain costs under different situations, determine selling prices, control efficiency, and provide a basis for operating policies. Cost accounting is described as a branch of knowledge, a science, an art, and a profession. The scope of cost accounting includes cost ascertainment, accounting, control, reporting, and auditing.
Management accounting relates to using cost information gathered by cost accounting to aid in decision making. It provides information for planning, control, and performance measurement. Management accounting is concerned with internal reporting and decision making, while financial accounting provides information externally. Management accounting is derived from cost and financial accounting and aids both short and long term planning, while cost accounting focuses on cost ascertainment and allocation. Costs can be classified in various ways, including by element, nature, behavior, function, and time. Costs relevant for management decision making include marginal cost, differential cost, opportunity cost, and replacement cost.
Employment PracticesRegulation and Multinational CorporationsRoopaTemkar
Employment PracticesRegulation and Multinational Corporations
Strategic decision making within MNCs constrained or determined by the implementation of laws and codes of practice and by pressure from political actors. Managers in MNCs have to make choices that are shaped by gvmt. intervention and the local economy.
Org Design is a core skill to be mastered by management for any successful org change.
Org Topologies™ in its essence is a two-dimensional space with 16 distinctive boxes - atomic organizational archetypes. That space helps you to plot your current operating model by positioning individuals, departments, and teams on the map. This will give a profound understanding of the performance of your value-creating organizational ecosystem.
Originally presented at XP2024 Bolzano
While agile has entered the post-mainstream age, possibly losing its mojo along the way, the rise of remote working is dealing a more severe blow than its industrialization.
In this talk we'll have a look to the cumulative effect of the constraints of a remote working environment and of the common countermeasures.
Sethurathnam Ravi: A Legacy in Finance and LeadershipAnjana Josie
Sethurathnam Ravi, also known as S Ravi, is a distinguished Chartered Accountant and former Chairman of the Bombay Stock Exchange (BSE). As the Founder and Managing Partner of Ravi Rajan & Co. LLP, he has made significant contributions to the fields of finance, banking, and corporate governance. His extensive career includes directorships in over 45 major organizations, including LIC, BHEL, and ONGC. With a passion for financial consulting and social issues, S Ravi continues to influence the industry and inspire future leaders.
A presentation on mastering key management concepts across projects, products, programs, and portfolios. Whether you're an aspiring manager or looking to enhance your skills, this session will provide you with the knowledge and tools to succeed in various management roles. Learn about the distinct lifecycles, methodologies, and essential skillsets needed to thrive in today's dynamic business environment.
Comparing Stability and Sustainability in Agile SystemsRob Healy
Copy of the presentation given at XP2024 based on a research paper.
In this paper we explain wat overwork is and the physical and mental health risks associated with it.
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Impact of Effective Performance Appraisal Systems on Employee Motivation and ...Dr. Nazrul Islam
Healthy economic development requires properly managing the banking industry of any
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their employees. Therefore, Performance appraisal appears to be inevitable since it set the
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Credit Management training seminar power point presentation
Corporate Governance Pactices in Pakistan; A case of Adamjee and Atlas Insurance Limited
1. 1 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Chapter #4 Filed work Project:
Adamjee Insurance Company LTD
Remuneration of the Members of the Board:
The Board of Directors has approved the remuneration of the members of the Board (non-
executive directors including independent directors) for attending meetings of the Board. The
meeting fee of Rs. 10,000/- per meeting is paid to directors. Travel expenses by air from city of
residence to city of the meeting are paid with hotel accommodation, if availed.
Director Information by Tiers:
Board of Directors: Designation:
Umer Mansha Chairman
Ibrahim Shamsi Director
Imran Maqbool Director
Muhammad Anees Director
Muhammad Arif Hameed Director
Muhammad Umar Virk Director
Shaikh Muhammad Jawed Director
Muhammad Ali Zeb Managing Director & Chief Executive Officer
Board of Directors Composition:
The following were the directors during the year 2018:
Total Number of Directors:
(a) Male 8
(b) Female 0
Composition:
I Independent Director: 1
Muhammad Anees
ii. Other Non-Executive Directors: 6
1. Fredrik Coenrard De Beer
(Resigned 23 February 2018)
2. Ibrahim Shamsi
3. Imran Maqbool
2. 2 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
4. Muhammad Arif Hameed
(Joined 10-5-2018)
5. Muhammad Umar Virk
6. Shaikh Muhammad Jawed
7. Umer Mansha
iii. Executive Director 1
Muhammad Ali Zeb
a) The type of Board it has in term of tenure. Common Tenure Board
a) The type of Board it has in term of levels. One Tier Board
b) How many directors on the Board seem to be there:
Sr.No Description of the Question: Answer:
1 On the basis of their shareholdings alone Yes
2 As representative of the government or a regulatory authority. No
3 As a nominee of a lender. No
4 On the Basis of their ability alone No
5
As representative of minority shareholders, civil society, or other
stakeholders. No
Meetings of the Board:
3. 3 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Categories of Shareholders: Number of Shares: Stake %:
Directors 152,278 0.044
Chief Executive Officer 7,073 0.002
Executives / Executives' Spouses 104 -
4. 4 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Atlas Insurance Limited
Directors’ Remuneration
The Board has a formal policy for remuneration of Directors depending upon their responsibility
in affairs of the Company. The remuneration is commensurate with their level of responsibility
and expertise needed to govern the Company successfully and to encourage value addition.
Categories of Shareholders
5. 5 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Meetings of the Board:
Board of Directors Composition:
6. 6 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
a) The type of Board it has in term of tenure. Common Tenure Board
b) The type of Board it has in term of levels. One Tier Board
c) How many directors on the Board seem to be there:
Sr.No Description of the Question: Answer:
1 On the basis of their shareholdings alone Yes
2 As representative of the government or a regulatory authority. No
3 As a nominee of a lender. No
4 On the Basis of their ability alone No
5 As representative of minority shareholders, civil society, or other
stakeholders.
No
7. 7 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Chapter#5 Field work Project:
Adamjee Insurance Company
Q1: What committees have been formed by the company board of director?
1. Audit Committee
2. Ethics, Human Resource and Remuneration Committee
3. Investment Committee
Q2: What function s has been assigned to each of these committees?
Q3: What is the composition of these Committees?
Q4: Do these committee’s issues separate report for the information of shareholders? If so,
are these report made a part of company annual report?
Yes, these committees prepare separate reports after that these report will be the part of the
annual report of the firm.
8. 8 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Atlas Insurance Limited
Q1: What committees have been formed by the company board of director?
1. Board and Management Committees
2. Audit Committee
3. Ethics, Human Resource and Remuneration Committee
4. Investment Committee
5. Underwriting, Reinsurance and Co-insurance Committee
6. Claims Settlement Committee
7. Risk Management and Compliance Committee
Q2: What function s has been assigned to each of these committees?
Board and Management Committees:
As envisaged by the Code of Corporate Governance for Insurers, 2016, (the Code), the Board has
formed Audit Committee, Ethics, Human Resource & Remuneration Committee and Investment
Committee. The Board has also established management committees namely; Underwriting,
Reinsurance & Co-insurance Committee, Claims Settlement Committee and Risk Management
& Compliance Committee. In addition to the regulatory requirements, the Board has also formed
Information Technology Committee. A Management Committee comprising of all departmental
heads headed by Chief Executive Officer is also in place for operational coordination.
Audit Committee:
The Committee consists of three non-executive directors, presided by an independent director.
The Audit Committee is responsible for assisting the Board in discharging its responsibilities in
relation to the disclosure of the financial affairs of the Company. The Committee focuses in
particular on compliance with accounting policies and ensuring that an effective system of
internal financial control is maintained. The ultimate responsibility for approving the annual and
interim financial statements remains with the Board. The terms of reference of the Audit
Committee have been determined by the Board in accordance with the Code of Corporate
Governance consisting on the following:
Major judgmental areas;
significant adjustments resulting from the audit;
going concern assumption;
any changes in accounting policies and practices;
9. 9 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
compliance with applicable accounting standards;
compliance with these regulations and other statutory and regulatory requirements; and
all related party transactions
Ethics, Human Resource and Remuneration Committee:
The Committee consists of three members. Majority of the members are non-executive directors
including the Chairperson who is also independent director. Committee is responsible for:
• Recommending human resource management policies to the Board;
• Recommending to the Board the selection, evaluation, compensation (including retirement
benefits) and succession planning of the Chief Executive Officer. Recommending to the Board
the selection and evaluation of Chief Financial Officer, Company Secretary, Compliance Officer
And Head of Internal Audit;
Investment Committee:
The Committee consists of five members including three non-executive directors, Chief
Executive Officer and Chief Financial Officer. The primary Responsibility of the Committee is
to assist the Board in discharging its responsibilities in overseeing Company's investment
portfolio, including:
Developing, reviewing and recommending to the Board investment strategies and
investment guidelines.
Monitoring management's compliance with the Company's investment strategies and
guidelines.
Monitoring compliance of the Company's investment policies and practices with
applicable legal and regulatory requirements.
Reviewing and approving all investment transactions made by the Company.
Reporting to the Board the Company's investment strategies and guidelines.
Five meetings of the Committee were held during the year.
Underwriting, Reinsurance and Co-insurance Committee:
The Committee consists of three members; chaired by a non-executive director.
Following Terms of Reference (TORs) for the Underwriting, Reinsurance & Co-insurance
Committee have been finalized by the Board:
Advise the Board and management concerning the establishment and review of the Company's
underwriting policies and guidelines.
10. 10 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Set out the criteria for assessing various types of insurance risks and determine the premium
policy of different insurance covers.
Regularly review the underwriting and premium policies of the Company with regard to relevant
factors such as its business portfolio and the Market development.
Develop the policy for effecting reinsurance, not inconsistent with the relevant provisions of the
Insurance Ordinance, 2000 and shall ensure that adequate reinsurance arrangements are made for
the business of the Company.
Review the reinsurance arrangements from time to time, and subject to the consent of the
participating reinsurers, make appropriate adjustments to the arrangements in the light of the
market development. Assess the effectiveness of the reinsurance program for the future
reference. Four meetings of the Committee were held during the year.
Claims Settlement Committee:
The Committee consists of three members, chaired by a non-executive director. The Committee
devises the claims settling policy of the Company. It oversees the claims position of the
Company and ensures that adequate claims reserves are made. It pays attention to significant
claims cases, which may give rise to a series of claims. The Committee determines the
circumstances under which the claims disputes shall be brought to its attention and decide how to
deal with such claims disputes. Four meetings of the Committee were held during the year
Risk Management and Compliance Committee:
The Committee consists of three members, chaired by the Chief Executive Officer.
Following Terms of Reference (TORs) for the Committee have been finalized by the Board:
Oversee the activities of the risk management function of the Company and shall make
appropriate recommendations to the Board.
Assist the Board in implementation of the decisions taken by the Board to mitigate
probable risks falling within the purview of the risk management function.
Monitoring the compliance function and Company's risk profile in respect of compliance
with the laws applicable to it as well as the internal policies and procedure.
Prepare reports detailing Company's risk profile and the compliance activities undertaken
proactively aiming at determination of the Company's ability to meet its legal and ethical
obligations, as well as report on identified weaknesses, lapses, breaches or violations of
11. 11 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
the areas within its purview and the controls and other measures in place to help detect
and address the same.
Supervise and monitor matters reported using the Company's Whistle Blowing policy for
employees and others to report compliance concerns or potential breaches, violations or
frauds within the areas under its purview.
Q3: What is the composition of these Committees?
12. 12 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Q4: Do these committee’s issues separate report for the information of shareholders? If so,
are these report made a part of company annual report?
Yes, these committees prepare separate reports after that these report will be the part of the
annual report of the firm.
13. 13 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Chapter#6
Adamjee Insurance Company
Atlas Insurance Limited
Q#1 The role of director in general?
Act within powers
Promote the success of the company
Exercise independent judgment
Exercise reasonable care, skill and diligence
Avoid conflicts of interest (a conflict situation)
Not accept benefits from third parties
Declare interests in proposed or existing transactions or arrangements with the company
Q#2 The difference between the remuneration of executive and non-executive director?
Adamjee Insurance:
The Board of Directors has approved the remuneration of the members of the Board (non-
executive directors including independent directors) for attending meetings of the Board. The
meeting fee of Rs. 10,000/- per meeting is paid to directors. Travel expenses by air from city of
residence to city of the meeting are paid with hotel accommodation, if availed.
Atlas Insurance:
The Board has a formal policy for remuneration of Directors depending upon their responsibility
in affairs of the Company. The remuneration is commensurate with their level of responsibility
and expertise needed to govern the Company successfully and to encourage value addition.
Q#3 How committed are the directors to the cause of good corporate governance?
Corporate boards have many duties and responsibilities. In every decision the board makes, they
must consider how it will affect their employees, customers, suppliers, communities and
14. 14 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
shareholders. Good corporate governance relies on distinct differences in the roles between
board directors and managers. It was never intended for board directors to be directly involved in
the daily operations of a corporation, and they certainly shouldn’t engage in micromanaging the
management. The main role of board directors is oversight and planning. Despite the differences,
board directors may delegate certain powers to the CEO or CFO under certain circumstances.
Q#4 How may INED serve on committees?
Adamjee Insurance:
Adamjee have no Independent None executive director, all the committees consist of
Independent directors and non-executive directors.
Atlas Insurance:
Atlas insurance have no Independent None executive director(INEDs), all the committees
consist of Independent directors and non-executive directors.
Q#5 What feeling do you get about the independence of INEDs?
Both of the firm board of directors have no INEDs but, for the batter working of the company
operations and for the Satisfaction of the stakeholders.
15. 15 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Chapter#7
Adamjee Insurance Company
Atlas Insurance Limited
Q1: How well the statement has been prepared?
The summary of audit report issued by the independent auditor show that the financial statement
of the company are prepared in compliance with the international financial reporting standards
and also follows the local rules or guideline provided by the SECP for preparing financial
statement.
Q2: How detailed and helpful are the notes to the accounts?
Notes to the accounts are very detailed and giving the proper information about any single entry
or written in the financial statement. The language of the notes to the accounts is very easy that
will be helpful for the investors to understand this statement in very easy manner.
Q3: How Informative and the realistic is the director Reports?
Director reports are also the part of annual report of the company, these report contain the
directors summary of the different operations of the company. The director are also stake holder
of the company and the work for the all other shareholders , there reports matter most to the all
stakeholders and for trust to continue.
Q4: How clean is the audit report?
The audit report of the company shows the integrity, reliability and accuracy of the company.
The cleanness of the audit report is dependent on the process of the auditor appointment and the
audit process. The audit reports of both companies are clean and according to the slandered.
Q5: How different is the composition of assets and liabilities of these Companies?
The composition of the of the financial statement of the both companies are same in format,
showing the data of current year and also two previous years. When we talk about the assets and
the liabilities both of the companies having increasing trend in their assets and the liabilities.
Q6: Dose these reports appear to be capable of fulfilling their three function of
Information, controlling and planning?
Yes, the report of the company shows the brief information about the firms operations, their
future plans and the company management who is performing the controlling function.
16. 16 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Q7: Is there any evidence of deliberate misstatement/ creative accounting?
No, the audit report of both companies shows that there is no misstatement in the record
provided by the firms.
17. 17 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Chapter#8
Adamjee Insurance Company
Atlas Insurance Limited
Q#1 How aware are they of the risk faced by their own department and the company?
Insurance firms commonly face all blow mention risk, and the risk management committees are
also aware of these risk
Liquidity Risk:
Liquidity risks may arise due to a large number of clams in general insurance and a large
surrender of policies in life insurance. This may lead to a loss of the company property in
instances when the company may not be able to raise the required cash.
Actuarial Risks:
Actuarial risks may be caused by different factors such as mortality rate variance, perils and
certain variance. Calculations of the given risks may be subjected to a variety of adjustments.
You may consider current statistical data, some past experience and future possibilities but in the
future, there will be a great variance in the speculated and the risks amount.
Reputation Risks:
This has a great impact on the amount of revenue which will be raised by the insurance
company. In the short run, it may not be an easy task to quantify the exact value caused by the
reputation risks but adverse results may pop-up during auditing. In Extreme cases, reputation
risks may lead to bankruptcy.
Business Risks:
Risks ranging from data breaches have resulted in a loss of the great amount of relevant data in
the insurance industry. Other related business insurance risks include human capital loss, loss of
damage and some of the relevant professional service mistakes that may be relevant.
Strategic Risks:
Strategic risks in the insurance sector require excellent strategic management skills to avert risks.
Strategic risks involve the process of identification, assessing and the management of the
insurance strategy.
Underwriting insurance Risks:
Underwritings of risks resulting from the process of selection and approval of which risks need
to be insured. Insurance risks may also be caused by the use of an inflexible underwriting of risks
process. The process of underwriting forms the basis of insurance and the failure to get it right at
this step may result in great loses in the future.
18. 18 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Q#2 What steps have they, or the company taken, to handle or mitigate these risks?
The companies fallow the three main techniques to mitigate the risk, the techniques are as
follows:
Accept the Risk:
If the risk is a very swear nature then the company try to eliminate it or try to reduce it but
conditions couldn’t apply then the companies accept it.
Avoided the Risk:
Sometime its depend upon the risk type company try to avoid it, through its strategies and enable
to completely avoided it.
Reduce the Risk:
Sometime firms will enable to reduce the risk by applying suitable techniques at suitable time.
Eliminate the Risk:
At once firms will be equipped enough to eliminate the complete risk from the firms.
Q#3 What steps still remain to be taken to make their department even safer?
Both of the firms need to improve their think tanks, to make batter strategies for risk. For this
purpose the firms should have to develop research based market analysis for the forecasting of
risk to make firm form all type of risk.
Q#4 What risk being avoided by the company and what are potential benefits that are
being sacrificed by avoiding these risks?
We have discussed in detail about the different types of risk and how the firms will be able to
avoid all types of risk. But something that firms can miss in avoiding risk is the chances of
growth. If the firm doesn’t take risk they will fail to get high return.
Q#5 What are being retained by the company?
The companies have retained the all types of losses that cause the high risk to the firm and save
the firm from huge loss in the form of market share and market performance.
Q#6 What is the company chosen to retain these risks?
Its depend upon the firm strategies that what the firm want either the firm is following risk bearer
strategy or risk avoiding strategy. If the firm is following the risk avoiding strategy then firm
save the huge amount of money and market reputation etc.
19. 19 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk
Chapter#9
Adamjee Insurance Company
Atlas Insurance Limited
Q#1 If has a formalized system of internal control, carefully evaluate its effectiveness. If
you find any weak areas in the present system, tabulate these weaknesses. Fir each such
weakness, list the possible losses that may arise three-from. Also suggest ways and means to
removing weaknesses from the system?
Yes, both of the firm has the formalized system of internal control and they make sure the
effectiveness of the internal control by conducting internal audit as well as external audit. This
leads both firms to grow at fast track and achieve high revenues by control their day to day
operations. They evaluate the system by conducting annual performance of departments and
employees as well.
Q#2 If your company does not have a formal system, of internal control, write a
memorandum of your CEO, outlining a need for, and advantage to be gained from, having
such a formalized system. Also provide him with a list of steps that need to be taken
regard?
Yes, both of the firms have proper system of internal control and to measure the efficiency of
that control by using different technique of evaluation. The internal control is maintained by
making different committees of board of directors that govern the operation of the firm and it’s
managing the working.
20. 20 Fiaz Ahmad , Center for Research and Development Minhaj University Lahore
fiaz.crd@mul.edu.pk