The Senate Standing Committee on Finance and Revenue on Wednesday unanimously approved the amendments to the State-Owned Enterprises Governance and Operations ordinance, 2024.
The committee met here with Senator Saleem Mandviwalla in chair and discussed the amendments on State-Owned Enterprises (Governance and Operations ) (Amendment) ordinance, 2024, said a press release.
Among others the meeting was attend by the Senator Sherry Rehman, Senator Anusha Rehman and senor official from the ministry and other attach departments.
The meeting was apprised that the act will provide nomination of independent directors institutionalized, majority of independent directors, security of tenure, removal criteria, enhanced board independence and appointment of CEOs.
It was informed that presently, it was needed to re-constitute the board of State Owned Enterprises to better align them with the reform initiatives aimed at restructuring and transformation as well as privatization of certain entities and other administrative affairs of government-owned institutions.
The officials said that through the amendments performance of board members of government owned enterprises will be reviewed. It was briefed that a board nomination committee has been constituted which will be responsible for recommending ex-officio position to be held by the relevant division or public sector organizations of the federal government or where necessary a provincial government.
Similarly the committee will be responsible for evaluating the performance of ex-officio and independent directors and recommending the removal of directors to the federal government on the basis of evaluating the performance of such directors.
The amendments in the act also improvises the procedure adopted by the board nominations for performing its functions will comply with the principles of merit confidentiality, transparency, diversity and fairness.
The act also provides amendments to the term of office of directors that the federal government can remove a director on the recommendation of the board nominations committee.